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Dollar Falls on Weak US Labor Market, Euro and Yen Strength
The US dollar weakened against the euro and yen on Tuesday, November 11, weighed down by concerns over a deteriorating US labor market after a report indicated that private employers cut jobs last month.
ADP Research said on Tuesday that its preliminary estimates show private employers cut about 11,250 jobs per week during the four weeks ending October 25.
This job cuts come as the federal government shutdown nears its end, which will likely lead to a surge in economic data that could point to a slowing economy.
"When the government shuts down, the data stops," said Mark Chandler, chief market strategist at Bannockburn Capital Markets in New York. "As it reopens, I think more weaknesses will emerge."
The U.S. Senate on Monday approved a compromise that would end the longest government shutdown in U.S. history, halting weeks of gridlock that disrupted food aid for millions, left hundreds of thousands of government employees without pay, and crippled air travel.
The agreement will now go to the Republican-controlled House of Representatives, where Speaker Mike Johnson said he hopes to pass it on Wednesday and send it to President Trump for his signature.
The dollar has risen in recent weeks as investors anticipate smaller interest rate cuts amid a more positive outlook for U.S. economic growth.
Some Federal Reserve officials are also wary of further rate cuts due to concerns about inflation expectations.
The dollar index, which measures the greenback against a basket of other currencies including the yen and the euro, fell 0.32% to 99.32, while the euro rose 0.38% to $1.16.
