Dollar index held steady around 104 on Monday as Federal Reserve expected to hold rates.
After increasing for two straight sessions, the dollar index held steady around 104 on Monday as investors continued to evaluate the prospects for US interest rates in light of the most recent round of economic data. According to the most recent US jobs data, the unemployment rate in the US unexpectedly increased to 3.8% in August, the highest level since February 2022 and more than 3.5% market projections. Even while the economy added more jobs than expected last month—187,000—it fell short of the 200,000 level for the third consecutive month, indicating a gradual improvement in labor market conditions. Additionally, according to ISM statistics, US manufacturing activity increased in August but continued to decrease for the ninth straight month. The Federal Reserve is expected by the markets to maintain interest rates constant this month and there is a larger likelihood that it won’t raise rates further this year.
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