The US dollar continued to move lower for a seventh day following the release of mixed economic data and speculation about the replacement of Fed Chairman Jerome Powell becoming more certain.
At 9.50 am, the US Dollar Index (DXY) which measures the value of the USD was at 98.934 points, up 0.06% since it opened in early trading Thursday in the Asian session.
The US dollar continued to be under pressure following speculation that Kevin Hassett, the White House economic adviser, may replace Jerome Powell as Fed Chairman when his term ends in May.
Hassett had previously expressed support for lower interest rates, thus reinforcing expectations of more dovish monetary policy and adding pressure on the USD.
US economic data released on Tuesday and Wednesday also reinforced the negative sentiment. The ISM Services Purchasing Managers' Index (PMI) showed that the services sector is still growing but at a slower pace, with a sharp decline in new orders and a contraction in employment for the sixth consecutive month.
The final S&P Global Services PMI also confirmed the moderation in activity.
Meanwhile, the ADP Employment Change report showed a 32,000 job loss in November, contrary to expectations for a gain. The weak data added to the optimism that the Fed may take a rate cut at its policy meeting next week.
