US dollar benefits from US employment data

The US dollar continues to rise since the beginning of daily trading on Tuesday amid speculations concerning the looming Federal Reserve’s decision on the US interest rate as well as the recent US employment data in a trading week that is busy with key economic events.

The US currency benefited from the rise in the Labour Cost Index in the United States to higher levels than expected, which would add to inflation in the country.

The Dollar Index, which measures the performance of the US currency against a basket of major currencies, rose to 106.23 points compared to the last daily close, which recorded 105.58 points. The index fell to its lowest level on the current trading day at 105.67 points, compared to the lowest level recorded at 105.67 points.

Markets expect the Fed rate to keep interest rates unchanged at the end of the FOMC’s first meeting on May 1. Inflation data for early 2024 has raised concerns that the transition to an annual inflation rate of 2.00% may take longer than previously expected.

US employment indicators continue to appear throughout the week, which is worth monitoring by market investors because employment data has a significant impact on the Federal Reserve’s monetary policy decisions.