Dollar Holds Near 18-Month High
The dollar index held firm around 102 on Monday, staying close to its highest level since April 2025 even as traders scaled back expectations for an imminent Federal Reserve rate hike following weaker-than-expected US jobs data. The greenback also continued to benefit from weakness in the euro, amid rising fiscal debt and ongoing political gridlock in France. Meanwhile, data released Friday showed the US economy added just 29,000 jobs in September, well below expectations of 90,000, following a downwardly revised gain of 133,000 in August. The unemployment rate climbed to 4.2%, while annual wage growth unexpectedly slowed to 3.0%, its weakest pace since May 2021. Markets are now pricing in nearly an 80% chance that the Fed will keep policy unchanged this month, while expectations for a December hike remained around 69%.
The dollar index held firm around 102 on Monday, staying close to its highest level since April 2025 even as traders scaled back expectations for an imminent Federal Reserve rate hike following weaker-than-expected US jobs data. The greenback also continued to benefit from weakness in the euro, amid rising fiscal debt and ongoing political gridlock in France. Meanwhile, data released Friday showed the US economy added just 29,000 jobs in September, well below expectations of 90,000, following a downwardly revised gain of 133,000 in August. 0%, its weakest pace since May 2021.
Markets are now pricing in nearly an 80% chance that the Fed will keep policy unchanged this month, while expectations for a December hike remained around 69%.