The US dollar strengthened on Tuesday after stronger-than-expected jobs data showed the labor market remained resilient, even ahead of expectations of a Fed rate cut.
The situation also gave the impression that policymakers may re-emphasize inflation risks that could limit the scope for further easing.
At 10.20am, the US Dollar Index (DXY) was at 99.209 points, down 0.03% since it opened in early trade on Wednesday in the Asian session.
The market is also looking ahead to several other central bank decisions this week. On Tuesday, the Reserve Bank of Australia kept interest rates unchanged and ruled out a rate cut anytime soon, lifting the Aussie higher.
Meanwhile, the US dollar continued to strengthen after the JOLTS report showed job openings rose modestly to 7.67 million at the end of October, although hiring remained weak.
With the important data out, attention is back on the Fed.
Investors are now reassessing expectations for a rate cut in 2026 amid doubts about Kevin Hassett, the leading candidate to replace Jerome Powell when his eight-year term as chairman ends in May.
There are concerns that Hassett may not be as dovish as US President Donald Trump had hoped.
