Dollar Index steadies near one and half month high ahead of US jobs report

The US dollar index is steadying near a one and half month high as investors await more clarity from September jobs report. Safe haven demand amid escalating tensions in the Middle East is also keeping the greenback well supported. Besides, new Japanese Prime Minister Shigeru Ishiba said on Wednesday that the economy isnt ready for another interest-rate increase, sending the JPY lower and in turn benefiting gains in the American currency. Meanwhile, the Institute for Supply Management (ISM) said that its Non-Manufacturing PMI rose to 54.9 in September, or the highest level since February 2023, suggesting that the economy remained on a solid footing in the third quarter. The US Department of Labor (DOL) reported that the number of Americans filing applications for unemployment benefits increased marginally to 225K during the week ended September 28 as compared to the 218K previous. This comes on top of a larger-than-anticipated increase in the US private-sector employment in September and an unexpected rise in the number of available jobs in August, providing evidence of a stable and still resilient labor market. The dollar index that measures the greenback against a basket of currencies is trading slightly lower at 101.60 after having surged to a one and half month top of 101.89 in the previous session.

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