Dollar Steady as Investors Await Fed Rate Decision Amid Mixed Economic Signals
The U.S. dollar remained in tight ranges on Monday, with investors awaiting a Federal Reserve rate cut decision. Despite inconclusive jobs data, the Fed is likely to make a modest rate cut. Other currencies showed minor movements, with the yen losing some safe-haven gains and the euro and sterling making slight advances.
The U.S. dollar held steady within tight ranges on Monday as investors wrestled with the scale of an anticipated Federal Reserve rate cut later this month. Market participants are keenly eyeing this week's U.S. inflation report for additional guidance.
Friday's U.S. employment data left traders unsure if the Fed would opt for a standard 25-basis-point cut or a larger 50 basis points. While August's job growth was less than expected, the unemployment rate dropped, and wage growth remained robust, suggesting a cooling labor market without triggering economic alarm bells.
Early Asia trade saw currencies largely rangebound following Friday's nonfarm payrolls results. The yen declined by 0.26% to 142.65 per dollar, easing after last week's gains driven by risk aversion. Meanwhile, the euro ticked up 0.03% to $1.1089, and sterling edged higher to $1.3138. Investors are keenly awaiting Wednesday's U.S. inflation data, which could further impact Fed rate expectations.
(With inputs from agencies.)
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