Dollar's Weekly Gain Trims as Bond Markets Stabilize
The dollar's weekly gain was curtailed as bond markets calmed and traders eyed U.S. jobs data for clues about potential Fed interest rate cuts. While the yen strengthened post a U.S.-Japan trade deal, the kiwi dollar rallied with Asian markets. A notable drop in jobless benefits signaled market anxiety.
On Friday, the U.S. dollar saw its weekly gains scaled back as global bond markets displayed signs of stabilization. This comes ahead of crucial U.S. jobs data, which traders are keenly watching for indications on upcoming interest rate decisions from the Federal Reserve.
Meanwhile, the Japanese yen benefited from a trade agreement between Japan and the U.S., which has brought down tariffs on American auto imports. The New Zealand dollar also saw an uptick, tracking the rise in Asian equities. A prior report on Thursday highlighted higher jobless claims, setting the stage for the upcoming payrolls data.
Experts are voicing concerns over fiscal uncertainties and potential impacts from President Trump's handling of Fed policies and tariffs. Notably, the labor market's performance remains pivotal in shaping expectations for the Fed's anticipated rate cuts, slated for discussion at the upcoming meeting on September 16 and 17.
(With inputs from agencies.)
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