Dollar falls as US job vacancy data weakens, increases expectations of Fed rate cut
(MENAFN) The U.S. dollar experienced a decline against most major currencies on Wednesday following the release of job openings data for July, which suggested a weakening labor market. This data has heightened expectations that the Federal Reserve may further reduce interest rates. The report indicated that job openings had fallen to their lowest level in three and a half years, prompting traders to increase their bets on a potential 50 basis point rate cut at the Fed's next meeting.
The dollar index, which gauges the currency's performance against a basket of six major currencies, dropped by 0.3 percent to 101.4. Against the Japanese yen, the dollar fell 0.9 percent to 144.22 yen, reflecting a broader risk-off sentiment in global financial markets. Despite this drop, the dollar index remains approximately 1 percent higher than its late August low of 100.51. As investors await Friday's U.S. jobs report, which is expected to provide further insights into the timing and magnitude of future interest rate adjustments, market sentiment remains cautious.
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