The dollar index remained near a four-month low of 103.7 on Friday, marking its fifth consecutive session of decline, its longest losing streak in nearly a year.
Dollar remains under pressure after NFP
Traders closely scrutinized the February payrolls report, which pointed to slight signs of softening in the labor market. The US economy added 151,000 jobs, falling just short of the expected 160,000, and the unemployment rate unexpectedly edged up to 4.1%. Wage growth also slowed to 0.3%, aligning with expectations, while federal government employment fell by 10,000. However, the full impact of the recent DOGE layoffs has yet to be fully realized, leaving some uncertainty in the data. Meanwhile, persistent concerns surrounding tariffs continue to weigh on investor sentiment, fueling broader worries about the US economic outlook.
USD keeps on weakening
President Trump responded to these concerns by suspending all tariffs on products covered by the North American trade agreement until April 2, which provided a temporary sense of relief but failed to fully resolve market uncertainty. As a result, the dollar continued to weaken, with investors remaining cautious as they assessed the potential economic implications of both the labor market data and ongoing trade tensions. The broader outlook remains unclear as these developments unfold, contributing to the dollar’s ongoing struggle.
