Dollar Holds Ground Amid Fed Rate Cut Speculation and Market Turmoil

The U.S. dollar showed some resilience after a disappointing jobs report and President Trump's dismissal of a top statistics official, sparking speculation of imminent Federal Reserve rate cuts. The dollar's movements were influenced by market reactions to employment revisions and geopolitical developments in trade and federal appointments.

The U.S. dollar found support on Monday following a disappointing jobs report that could prompt Federal Reserve rate cuts amid ongoing political developments. The dollar, despite seeing fluctuations, has steadied after recent market turmoil.

U.S. employment growth fell short of expectations, with nonfarm payrolls revised downward, highlighting weakened labor market conditions. Trump's dismissal of a leading statistics figure added to the pressure, alongside the resignation of a Federal Governor, enabling potential changes at the Fed.

Market speculation now heavily favors a Fed rate cut in September, with a 90% chance of easing rates amidst the weaker jobs data. Treasury yields fell as bets mounted, and the Swiss franc weakened under new tariffs, demonstrating the global impact of these U.S. developments.

(With inputs from agencies.)