The US dollar sank to its lowest in several months as jobs data showed a slower-than-expected increase, while Federal Reserve Chairman Jerome Powell said the central bank was in no rush to cut rates. The report, which suggested the labor market had slowed, priced in 78 basis points of rate cuts this year, or about three rate reductions of 25 basis points each.
The euro rose to its best weekly gain in 16 years as Germany’s fiscal reforms boosted confidence in the European economy. The greenback fell versus most currencies, with a dollar index at 103.81, down 0.4% on Friday.
Powell stated that the Fed would be cautious about cutting rates until more clarity is provided on how policies of the new Trump administration affect the economy. This move suggests that the US central bank remains vigilant in monitoring inflation and economic growth.
In cryptocurrencies, bitcoin and ether fell after Trump signed an executive order to establish a strategic reserve containing four coins, including bitcoin.
Source: https://www.reuters.com/markets/currencies/us-dollar-struggles-near-4-month-low-amid-growth-concern-jobs-data-spotlight-2025-03-07