The U.S. dollar fell to a nearly seven-week low on Tuesday as investors anticipated data revisions that could reveal a weaker jobs market, bolstering expectations for more aggressive Federal Reserve interest rate cuts. According to a Reuters report, the dollar index dropped to 97.344, its lowest point since July 24.
Read also: Dollar Holds Steady as Markets Assess Trump Tariff Impact
Economists expect preliminary benchmark revisions for jobs data from April 2024 to March 2025 to show a downward adjustment of up to 800,000 jobs. This would suggest the Federal Reserve may be lagging in its goal to achieve maximum employment. Data from the IndexBox platform corroborates a softening in labor market indicators, aligning with these broader economic concerns. Advisors to the administration of President of the United States Donald Trump are reportedly preparing a report on the Bureau of Labor Statistics’ alleged shortcomings.
Traders are pricing in an 89.4% chance of a 25 basis point rate cut at the Fed’s September meeting. The euro edged higher to $1.1774, while gold held near record highs. The yen strengthened to 147.22 per dollar, and the Australian dollar also saw modest gains.