U.S. Dollar Holds Steady Amidst Economic Uncertainty
The U.S. dollar remained stable ahead of a key jobs report, amid signs of labor market weakness prompting expectations of a Federal Reserve rate cut. Jobless claims rose more than anticipated, while private payroll growth underperformed. Treasury yields fell, with traders betting heavily on an upcoming rate reduction.
The U.S. dollar stayed stable on Thursday in anticipation of a critical jobs report, following data indicating a weakening labor market, heightening expectations for a Federal Reserve rate cut this month. Recent statistics revealed that jobless claims increased more than expected, reflecting growing softness in employment conditions.
The dollar index rose by 0.2% to 98.34 after a previous decline, showcasing market uncertainty as traders await Friday's comprehensive non-farm payrolls report. Although the dollar strengthened against the yen and franc, it lost ground on Wednesday to these safe-haven currencies.
Treasury yields showed a slight decline, with the 2-year note yield dropping 1.4 basis points and the 10-year yield down 2.5 basis points. The market is heavily pricing in the likelihood of an imminent rate cut by the Federal Reserve, with confidence levels rising to near certainty.
(With inputs from agencies.)
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