Dollar Holds Strong Amid Anticipation of U.S. Economic Data

The dollar remained close to a two-week high against the yen and euro, supported by investor anticipation of upcoming U.S. economic data. This data will influence expectations for the Federal Reserve's planned interest rate cuts. Key data this week includes U.S. payrolls, job openings, and jobless claims reports.

The dollar maintained its position near a two-week high against the yen and the euro on Tuesday, driven by investor anticipation of a series of forthcoming U.S. economic data. Friday's U.S. payrolls report is expected to play a crucial role in determining the scope of the Federal Reserve's planned interest rate cut.

In the currency market, the euro was last at $1.1060, close to the two-week low of $1.1042 touched in the previous session, while the yen was at 147.10 per dollar, near the two-week low of 147.16 hit on Monday. Investor focus this week will be primarily on the U.S. payrolls data, following Fed Chair Jerome Powell's recent endorsement of an imminent start to interest rate cuts due to labor market concerns.

Additional economic indicators such as Wednesday's job openings data and Thursday's jobless claims report will also be under scrutiny. Market expectations are currently pricing in a 69% likelihood of a 25 basis points (bps) Federal Reserve rate cut in mid-September, with a 31% chance of a more substantial 50 bps cut, according to the CME FedWatch tool.

(With inputs from agencies.)