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Source: Newsmaker.id
The US Dollar Index turned lower during Wednesday's trading (Sept 2) after a sharp surge in the yen forced the greenback to erase its intraday gains. The DXY fell 0.11% to around 99.55, having previously touched 99.86—its highest level since August 14.
The yen strengthened nearly 1%, with the USD/JPY pair plunging to around 158.80 after briefly approaching the psychological 160 level. The rapid appreciation sparked speculation that Japanese authorities had intervened or conducted a rate check, although there has been no official confirmation.
Dollar weakness deepened after ADP data revealed that the US private sector added only 38,000 jobs in August. This figure fell short of the 47,000 forecast and marked a slowdown from the 46,000 jobs added in July.
Downward pressure on the dollar may be limited, however, as the market still sees a roughly 70% probability that the Federal Reserve will raise interest rates at its September 15–16 meeting. US 10-year Treasury yields also remained elevated at around 4.79% as investors awaited Friday's Nonfarm Payrolls report.
Newsmaker Analysis: The DXY could regain strength if the Nonfarm Payrolls (NFP) report is solid and expectations for a Fed rate hike rise. Conversely, disappointing labor data or confirmation of Japanese intervention could further pressure the dollar, boost the yen, and provide room for gold to appreciate. (arl)
Source: Newsmaker.id