Solid Gold Berjangka – The US Dollar Index (DXY) rose to the 101.64 level during Friday’s (Nov 6) trading session. This gain partially reversed the losses seen over the previous two sessions, as investors awaited the US labor market report and monitored a global sell-off in stock markets.
Demand for the dollar as a safe-haven asset increased following significant pressure on global equity markets. Concerns regarding the outlook for the artificial intelligence sector, high capital expenditures, and the potential for stricter regulations under a Democrat-controlled Congress have further fueled investor caution.
Meanwhile, the market anticipates that the US labor market report will show continued stability. The data is expected to reinforce the view that the labor market remains healthy without exerting excessive inflationary pressure.
Expectations surrounding Federal Reserve policy are also providing support for the dollar. The market currently prices in a roughly 71% probability of a 25-basis-point interest rate hike at the December meeting.
The dollar saw its strongest gains against the euro, the British pound, and the Japanese yen. Despite Friday’s rise, the dollar index remains down approximately 0.3% for the week, reflecting a mixed sentiment toward the greenback. (srh)