U.S. Dollar Softens as Investors Eye Payrolls Data
The U.S. dollar weakened against major currencies on Thursday as investors awaited Friday's payroll report, which may influence the Federal Reserve’s interest rate decisions. Data showed a decline in jobless benefit applications, easing labor market fears. The euro and yen strengthened, while cryptocurrencies like Bitcoin and Ether fell.
The U.S. dollar weakened against most major currencies on Thursday as investors braced for Friday's U.S. payrolls report, potentially influencing the Federal Reserve's path on interest rates. Recent signs of slowing U.S. economic growth have amplified expectations of rate cuts.
Fed Chair Jerome Powell previously signaled possible rate cuts due to softening labor market conditions. Data revealed a decline in jobless benefit applications, alleviating fears of a deteriorating job market. August private job growth hit a 3-1/2 year low, prompting economists to predict an increase of 165,000 jobs for August.
Adam Button, chief currency analyst at Forexlive, described a market unsure of the scale of rate cuts needed. Markets are pricing a 59% chance of a 25 basis points cut in the upcoming Fed meeting. The dollar index dropped, as the euro and yen saw gains, and cryptocurrencies like Bitcoin and Ether declined amid risk-averse investor moves.
(With inputs from agencies.)
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