United States Dollar Index strengthens above 99.00 as robust US jobs data boosts Fed rate hike bets
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.20 in the early Asian trading hours on Monday. The DXY edges higher amid a ramp-up in US rate hike bets.
The US Dollar Index (DXY) climbed above 99.00 on Monday as strong US jobs data increased the likelihood of a Federal Reserve (Fed) rate hike. The DXY, which measures the value of the US dollar against a basket of six other currencies, was trading around 99.20 in early Asian hours. The US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) rose by 162,000 in August, up from an upwardly revised 21,000.
This surpassed the market's expectations of 56,000. Traders now believe there is a 58.3% chance the Fed will raise rates this month, according to the CME FedWatch tool. Upcoming inflation data, including the Producer Price Index (PPI) and Consumer Price Index (CPI), will provide further insight into the Fed's policy direction. If inflation reads too high, a rate hike may be more likely, boosting the US dollar.
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