Dollar index recovers after sharp slide on Challenger Job Cuts report

The dollar index is recovering on Friday following a near half a percent decline in the previous session following Challenger report that showed US job cuts in October hit highest level for the month in 22 years, increasing expectations of a rate cut. U.S.-based employers announced 153,074 job cuts in October, up 175% from the 55,597 cuts announced in October 2024. It is up 183% from the 54,064 job cuts announced one month prior, according to the report. Through October, employers have announced 1,099,500 job cuts, an increase of 65% from the 664,839 announced in the first ten months of last year. It is up 44% from the 761,358 cuts announced in all of 2024. Year-to-date job cuts are at the highest level since 2020 when 2,304,755 cuts were announced through October, the report further noted. Besides, prolonged US government shutdown is adding pressure on the greenback. The dollar index that measures the greenback against a basket of currencies is quoting at 99.72, up 0.14% on the day following sharp slide of 0.5% yesterday. The DXY hit a five month high above 100 during the week.

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