Dollar Nearing Two-Week High Amid Data-Heavy Week

The dollar traded near a two-week high against the euro as traders awaited key U.S. data, including Friday's payrolls report, which could influence Federal Reserve interest rate decisions. The Fed might cut rates due to concerns about a softening labor market, and jobs data will be closely watched.

The dollar hovered near a two-week high against the euro on Tuesday as traders braced for a data-heavy week, including Friday's U.S. payrolls report that could determine the path of interest rate cuts from the Federal Reserve.

Investor focus this week will be on the U.S. payrolls data after Fed Chair Jerome Powell last month hinted at possible rate cuts due to labor market concerns. Economists expect an increase of 165,000 U.S. jobs in August, following a rise of 114,000 in July, according to a Reuters survey.

Additionally, job openings data on Wednesday and the jobless claims report on Thursday will be under scrutiny. The euro dipped 0.3% against the dollar to $1.1043 on Tuesday, mirroring broader market sentiments.

(With inputs from agencies.)