Dollar Extends Losses Against Major Counterparts

(RTTNews) - The U.S. dollar drifted lower on Wednesday, extending recent declines, as minutes from the Federal Reserve's latest monetary policy meeting and revised data from the Bureau of Labor Statistics showed job growth in the U.S. was weaker than previously reported in the year to March 2024 indicated an interest rate cut by the Fed next month.

The CME Group's FedWatch Tool indicating a 61.5% of a quarter point rate cut next month and a 38.5% chance of a half point rate cut.

The BLS said the U.S. economy added 818,000 fewer jobs from March 2023 to March 2024 than initially reported, reflecting 0.5 percent weaker job growth.

While the data added to recent optimism about an interest rate cut next month, the slower than previously reported job growth also rekindled concerns about the strength of the labor market.

The minutes of the Fed's late July meeting revealed that the "vast majority" of participants believed it would "likely be appropriate" to lower rates at the next meeting if inflation data continued to come in "about as expected."

The dollar index, which dropped to 100.92, recovered to 101.19, but still remained well below the flat line, netting a loss of about 0.25%.

Against the Euro, the dollar weakened to 1.1151 from 1.1131. The dollar dropped more than 0.4% against Pound Sterling at 1.3089 a unit of the British currency.

Against the Japanese currency, the dollar declined marginally, fetching 145.19 yen a unit. The dollar gained slightly against the Aussie at 0.6741.

The Swiss franc firmed to 0.8516 against the U.S. dollar, gaining from 0.8541. Against the Loonie, the dollar dropped to C$ 1.3601 from C$ 1.3621.