Dollar Dips Slightly Ahead of Crucial U.S. Jobs Report

The dollar edged down slightly on Monday but stayed near its highest level in almost two weeks. Investors are focused on the upcoming U.S. jobs report, which could influence the Federal Reserve's decision on interest rate cuts. Analysts expect the job figures to impact the magnitude of the expected rate cut.

The dollar saw a minor decline on Monday but hovered close to its peak in nearly two weeks. Investors are eagerly watching the upcoming U.S. jobs report, set to be released later this week, which could significantly shape the Federal Reserve's next interest rate move.

Analysts point out that the job figures will be crucial in determining the scale of the anticipated rate cut from the Federal Reserve. Markets have already factored in a 25 basis point cut. The greenback climbed to its highest level since August 20, supported by increased long-term Treasury yields and robust economic data.

Traders see a 33% likelihood of a 50-basis point rate cut this month, down from 36% a week ago. The focus on economic figures will continue, with the dollar expected to weaken in the latter half of the year despite the U.S. economy's relatively stronger performance.

(With inputs from agencies.)