The US dollar fell to a near five-week low against major currencies on Friday as investors braced for a possible interest rate cut by the Federal Reserve (Fed) next week.
At 10.10am, the US Dollar Index (DXY) that measures the value of the greenback was at 99.001 points, down 0.07% since it opened in early trade on Thursday in the Asian session.
Markets are widely expecting a quarter-point cut at the Federal Open Market Committee (FOMC) policy-setting meeting on December 9-10, with attention focused on any indication of the amount of additional easing next year.
LSEG data showed traders pricing in an 86% chance of a rate cut next Wednesday, with expectations for 2 to 3 more cuts next year.
Fed officials continue to monitor the labor market to determine whether the economy needs more policy support.
Overnight data showed the number of Americans filing new claims for unemployment benefits fell to a more than three-year low last week, but the figure may have been affected by the Thanksgiving holiday.
The data picture also remains incomplete due to the longest government shutdown on record, which has delayed some key releases and left some data uncollected.
Monthly payrolls figures, which are usually released on Friday, have also been delayed, while the previous month's report has yet to be released.
However, one of the Fed's preferred inflation indicators, the Personal Consumption Expenditures (PCE) deflator, is due on Friday, albeit for September. Economists polled by LSEG had expected a 0.2% monthly increase in the core component.
