US dollar price

Dollar Remains ‍Weak Ahead of Key Inflation Data Release

New ‍York – ​ The U.S. dollar continued to trade ⁣at subdued levels Monday, September⁢ 8, 2025, following a dip to​ a ⁢three-week low on Friday triggered by weaker-than-expected U.S. non-farm⁣ payroll data. the currency’s performance⁤ is now closely tied ⁤to ⁤upcoming inflation figures, ​with potential implications for interest rate expectations adn global currency‌ markets.

The‌ dollar’s recent weakness reflects investor reassessment of the Federal Reserve’s monetary policy path. Disappointing jobs​ data has fueled speculation that⁤ the Fed may slow or pause its interest rate ⁢hikes, diminishing the dollar’s appeal. This comes⁣ as other global economies face ⁤distinct challenges, potentially bolstering the dollar shoudl U.S.economic data prove more resilient.Currently, the dollar ⁣index is ⁣holding steady at 97.767 points, after‌ falling‌ to ​97.430 on Friday,according to The Wall Street Journal. Financial analyst Chris Tourner anticipates potential short-term support ⁣for the dollar‍ this week if inflation data exceeds expectations‌ or as U.S. companies prepare for tax payments due September 15, potentially driving the index⁤ up⁤ to⁣ 98.50.Economists surveyed by The wall Street​ Journal predict a 0.3% increase in monthly inflation for August,‍ following a‌ 0.2% rise in July, though ‌a ‍0.4% increase remains a possibility.⁣ currency market expert Jin Foley suggests that stronger inflation data could prompt investors⁢ to reduce their “short dollar” positions – bets that the dollar will decline – potentially‌ leading to a ‍rally.

Data from the Futures trading⁢ Committee indicates speculators​ have maintained net short positions ⁣on the dollar since mid-June, leaving⁢ the currency⁢ vulnerable to a “short covering” rally. This vulnerability is amplified by​ ongoing economic and political uncertainties in other major economies, including a government crisis in France,⁣ budget concerns in ‍Britain, and ⁤a leadership contest within Japan’s Liberal Democratic Party.

foley further noted​ that positive ⁤inflation data released next Thursday could lead markets to scale back expectations ‍of interest ​rate cuts, potentially ⁢pushing the euro down to $1.16⁢ from its current level ⁤of $1.1730.