Dollar rises on anticipation of US jobs data

On Thursday, the dollar extended the rally that began on Wednesday, as investors awaited the US jobs and inflation data, looking for indications that may mean reducing the intensity of the interest rate hike and reducing the rise of the US currency.

The euro fell 0.27 percent to $0.9859, after the release of the minutes of last month’s European Central Bank meeting showed that policymakers are concerned that inflation may remain at elevated levels.

The British pound also fell 0.6 percent, while the dollar held firm against the Japanese yen and Swiss franc.

And the dollar index rose by 0.3 percent, retreating from its highest level in 20 years at 114.78, which it recorded at the end of September.

Among the main factors driving the currency markets currently is the fluctuation of expectations about the severity of the hike that may be announced by central banks, especially the Federal Reserve (the US central bank), in interest rates.

US jobs data is due on Friday, while inflation data will be released next week.

The Australian dollar fell 0.5% to $0.6455, still struggling after an unexpectedly small rise in Australian interest rates by 25 basis points.