The dollar index edged up slightly in trading as investors wait for the jobs report, which is expected to be released later today, for information on the Federal Reserve’s upcoming decision. Markets expect the U.S. nonfarm economy to add 325,000 new jobs through May, in addition to a 0.4% increase in the average monthly wage index and a drop in the unemployment rate from 3.6% to 3.5%.
Investors are also awaiting statements from Federal Reserve Vice President Lail Brainard later today, after she pointed to the possibility of a 50 basis point hike in interest rates during the June and July meetings in an interview with CNBC on Thursday, explaining that she sees no reason stop on the path of raising the interest rate at the September meeting until inflation is brought down to the bank’s target of 2%.
The dollar index, which measures the behavior of the US currency against a basket of six major currencies, rose slightly by 0.14% to 101.88 points at 1410 Beirut time, approaching its first weekly gain after a two-week decline. On the other hand, the US currency stabilized against the euro at $1.0736 and against the pound sterling at $1.2565, while against the Japanese yen it rose 0.21% to 130.10 yen.
Source: El Iktisad
