Economic News: US Dollar Under Pressure Despite Strong Jobs Data
Updated: February 7, 2024, 8:26 AM EST
The US dollar remained under pressure on Wednesday, despite unexpectedly strong jobs data and cautious comments from Federal Reserve Chairman Jerome Powell, which dampened expectations of an early interest rate cut.
Analysts attributed the dollar’s decline to technical factors, following a two-day rally of up to 1.4% against the euro after the jobs report and Powell’s remarks.
US Treasury yields also fell from their recent highs, as strong demand for new three-year bonds eased some of the dollar’s support.
In early Asian trade, the dollar was little changed at $1.0755 per euro, after dipping 0.1% the previous day. It had earlier touched its highest level since November 14, 2023, at $1.0722.
The dollar index, which tracks the performance of the US currency against six major currencies, stabilized at 104.14 points after falling 0.29% the previous day. It had reached its highest level since November 14 at 104.60 points on Monday.