SINGAPORE: The dollar sank to an almost seven-week low on Tuesday as investors braced for US data revisions that could show the jobs markets in worse shape than initially thought, shoring up the case for even deeper Federal Reserve interest rate cuts.
The dollar index fell to the lowest since July 24 in Asia trade to 97.344 ahead of the release of preliminary benchmark revisions for jobs data covering the period from April 2024 to March 2025. Economists anticipate a downward revision of as much as 800,000 jobs, which could signal that the Federal Reserve is behind the curve in efforts to achieve maximum employment.
“The employment numbers are getting worse and worse at a heavy rate,” said Alex Hill, managing director at Electus Financial in Auckland. “That’s translating into a weaker US dollar slowly, but we expect that to accelerate.”