Dollar Soars: USD Reaches 2-Week Peak Against Euro
USD Exchange Rate Today: Dollar Reaches Two-Week High Against Euro
The US Dollar Index (DXY), which measures the greenback’s fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), increased by 0.12% to 101.77 in the US market.
USD Exchange Rate Today in the World
The dollar rose to a two-week high against the euro on Tuesday, as traders braced for a busy week of data, including a U.S. payrolls report later this week that could help shape the path of interest rate cuts by the Federal Reserve.
Investors’ focus this week will be squarely on US payrolls data after Fed Chairman Jerome Powell last month confirmed preparations for a rate cut, a move aimed at alleviating concerns about labour market weakness.
Economists polled by Reuters had forecast 165,000 jobs added in the US in August, up from 114,000 in July. Employment data released today, September 4, and the report on unemployment claims on September 5 also received market attention.
Markets are pricing in a 63% chance of a 25 basis point rate cut at the Fed’s September 17-18 meeting, with a 37% chance of a 50 basis point cut, according to the CME FedWatch tool. Markets are also pricing in a total of 100 basis points of cuts for the year.
The euro fell 0.3 percent against the dollar to $1.1043 in late trade, after falling to a two-week low of $1.103375 earlier in the session. The dollar also appeared to benefit from its safe-haven status as equities and riskier currencies sold off in the last session.
Upcoming data will also provide clues on whether the dollar’s August decline will continue. “A weaker jobs report would likely weigh on the dollar,” Fawad Razaqzada, market analyst at StoneX, said in a note.
The DXY index fell 2.2% in August, its worst monthly decline since November. In the last trading session, the index continued to increase slightly again. The dollar fell 0.7 percent against the yen in the previous session, to 145.89 yen, after media reported that the Bank of Japan governor reiterated that the central bank would continue to raise interest rates if the economy and inflation remained at current levels. The yen gained on the comments.