Dollar Hits One-Month Low Amid U.S. Economic Concerns
The dollar struck one-month lows against the yen and faced pressure against major currencies, fueled by mounting concerns over the U.S. economic outlook. Anticipations of a substantial Federal Reserve rate cut and volatile labor market data have heightened market anxiety, leading to significant currency movements and investor nervousness.
The dollar reached one-month lows against the yen and remained under pressure relative to other major currencies on Thursday as growing concerns over the U.S. economic outlook bolstered expectations of a significant rate cut from the Federal Reserve next week.
The yen, sought after for its safe-haven status, also touched a one-month high, driven by speculation that upcoming rate hikes from the Bank of Japan could enhance its value amid narrowing interest rate differentials.
Global markets have been jittery, with stocks suffering notably after softer-than-anticipated U.S. data this week revived concerns over the economic growth prospects and a potential slowing labor market. Friday's pivotal U.S. nonfarm payrolls report, along with private-sector employment, weekly unemployment claims, and service-sector activity readings, are set to influence market volatility, City Index market strategist Fiona Cincotta noted. "Friday's data could either confirm or dispel recession fears," she added.
(With inputs from agencies.)
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