The U.S. dollar weakened against major global peers on Tuesday after delayed economic data revealed stronger-than-expected job growth, a development that prompted investors to reassess the pace of future interest rate cuts by the Federal Reserve. The greenback slipped to near a two-month low during Asian trading as markets digested the mixed signals from the labour report.
According to the U.S. Labor Department, the economy added 64,000 jobs in November, beating economists’ expectations in a Reuters poll, following a revised loss of 105,000 jobs in October. The report was released weeks late due to a 43-day U.S. federal government shutdown. While the headline figure offered some relief, the unemployment rate climbed to 4.6% from 4.4%, raising concerns about underlying labour market softness.
Currency markets reacted cautiously. The dollar fell 0.26% against the Swiss franc and pushed the dollar index—tracking the greenback against a basket of major currencies—down 0.22% to 98.05, marking a second straight session of losses. Analysts noted that job gains were concentrated in non-cyclical sectors such as healthcare, suggesting limited momentum in broader economic activity.
Attention has now shifted to a packed week of central bank decisions. The European Central Bank is widely expected to hold rates, a stance that has supported the euro, which climbed to its highest level since September. The Bank of England faces a closely split vote, with markets increasingly pricing in a possible rate cut, while sterling rose to a two-month high ahead of the decision.
In Asia, expectations of a rate hike by the Bank of Japan weighed on the dollar against the yen, even as analysts cautioned that fiscal concerns could limit yen gains. Elsewhere, cryptocurrency markets were mixed, with Bitcoin rebounding from recent losses while Ether edged lower, reflecting broader uncertainty across global financial markets.
source: cnbc