Updated March 9th, 2024 at 11:29 IST

Dollar faces pressure as data keeps rate cut hopes alive

Mixed data kept expectations alive for a potential June interest rate cut by the Federal Reserve.

Reported by: Business Desk
Dollar | Image:Pixabay
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Dollar faces pressure: The dollar showed modest weakness against most major currencies on Friday, marking its weakest weekly performance against the euro so far this year. 

Mixed data kept expectations alive for a potential June interest rate cut by the Federal Reserve.

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According to the labour department's Bureau of Labor Statistics, nonfarm payrolls increased by 275,000 jobs last month, while January's figures were revised down to 229,000 jobs created.

The unemployment rate rose to 3.9 per cent in February from 3.7 per cent in the previous three months.

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Stuart Cole, chief economist at Equiti Capital, noted that the market had concerns about the Fed stepping back from rate cuts, but the latest data provides optimism for a potential cut this year.

The euro was slightly lower against the dollar, trading at $1.09425. It marked its best weekly performance against the dollar since December.

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The yen rose to a five-week high against the dollar amid reports that the Bank of Japan is considering raising interest rates and adopting a new monetary policy framework.

Sterling strengthened against the euro and dollar on signs that the European Central Bank and the US Federal Reserve might be closer to rate cuts than the Bank of England.

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The outlook for interest rate cuts in the US and Europe supported the risk-sensitive Australian and New Zealand dollars, with both currencies slightly higher.

Bitcoin rose to $69,207, hitting a record high of $70,175.

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(With Reuters Inputs)

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Published March 9th, 2024 at 11:29 IST