Dollar extends gains before key US jobs report

The dollar index climbed toward 99 on Friday, rising for a fourth consecutive session to its highest level in nearly a month.

Investors positioned ahead of the December jobs report for clearer signals on labor market conditions and the Federal Reserve’s policy outlook.

Data released on Thursday showed weekly jobless claims edging up slightly to 208,000, while announced job cuts fell to 35,553 in December, the lowest level since July 2024, pointing to a resilient labor market.

Markets are pricing in nearly a 90% probability that the Fed will keep policy unchanged at its January meeting, although traders continue to anticipate two or more rate cuts later this year.

Investors also awaited a potential US Supreme Court ruling on the legality of tariffs imposed by the Trump administration.

The dollar strengthened broadly, posting its strongest weekly gains against the euro amid signs of easing inflationary pressures in Europe.