The dollar approached its highest level in two weeks against a basket of currencies, during early Wednesday trading, while investors evaluated US economic data that showed a decline in jobs in the labor market, while they bet that the Federal Reserve (the US central bank) would reduce interest rates next year.
The dollar index, which measures the performance of the US currency against six competing currencies, rose 0.019 percent to 103.99, after rising 0.3 percent overnight. The index rose 0.5 percent this month, after falling three percent in November, the largest monthly decline in a year.
Data on Tuesday showed that US job openings fell to their lowest levels in more than two-and-a-half years in October, the strongest sign yet that higher interest rates are weakening demand for labor.
The data also showed there were 1.34 job vacancies for every unemployed person in October, the lowest level since August 2021.
Focus will now turn to the November jobs report released on Friday for evidence of the economy's strength ahead of the US Federal Reserve's policy meeting next week.
Federal Reserve officials are now going through a blackout period before its meeting on December 12-13.
Meanwhile, the euro reached $1.0795, after falling to a three-week low of $1.07785 yesterday, Tuesday.
Investors believe that the European Central Bank may make its first interest rate cut by March. Eurozone inflation fell more quickly than most observers expected, as evidenced by consumer price data last Thursday.
The pound sterling reached $1.2601 in recent transactions, rising 0.06 percent during the day. The Japanese yen increased 0.03 percent to 147.12 to the dollar.
The Chinese yuan fell in foreign transactions by 0.09 percent against the US currency to 7.1657 to the dollar. Moody's lowered its outlook on China's credit rating to negative.
As for cryptocurrencies, Bitcoin exceeded $44,000, the highest level since April 2022. It recorded $43,995 in the latest transactions.
