Dollar Dips: U.S. Job Surge Raises Fed Rate Concerns

The U.S. dollar weakened against major currencies after the release of economic data revealing unexpected job growth. With 64,000 jobs added in November, surpassing economist predictions, the Federal Reserve may now reconsider its interest rate reduction strategy. The employment report had been delayed by a government shutdown.

The U.S. dollar experienced a decline on Tuesday as the release of delayed economic data indicated stronger-than-expected jobs growth, suggesting potential caution from the Federal Reserve in further rate cuts.

In November, the U.S. economy added 64,000 jobs, exceeding the expectations of Reuters-polled economists. This followed a loss of 105,000 jobs in October, as recorded by the Labor Department. The revelation was postponed due to the recent 43-day U.S. federal government shutdown.

Consequently, the dollar eased, dropping 0.08% to 0.795 against the Swiss franc, while the euro increased 0.09% to trade at $1.1763. The dollar index also fell by 0.11% to 98.15, reflecting its performance against a basket of currencies, including the yen and the euro.

(With inputs from agencies.)