Dollar Index Edged Down Last Week Despite Solid Jobs Data

The six-currency Dollar Index declined mildly during the week ended April 3 amidst the turbulent geopolitical situation in the Middle East swayed both by escalatory rhetoric as well as peace efforts. Though the jobs data released from the U.S. on Friday revealed a robust job market, the dollar index closed the week ended April 3 on a negative note.

During the last week, the U.S. dollar inter alia lost against the euro, the Australian dollar as well as the Japanese yen. The greenback however held its ground against the British pound, the Canadian dollar, the Swedish krona as well as the Swiss franc. As a result, the Dollar Index which measures the Dollar’s strength against a basket of 6 currencies dropped 0.12 percent on a weekly basis.

Here is a quick recap of the dollar’s trajectory during the week ended April 3. During the week, the Dollar Index traded between the weekly high of 100.64 recorded on Tuesday and the weekly low of 99.30 recorded on Wednesday. The index eventually closed the week’s trading at 100.03, implying a decline of 0.12 percent from the level of 100.15 on March 27.

Data released on Tuesday by the U.S. Bureau of Labor Statistics showed job openings falling to 6.882 million in February, below market expectations of 6.92 million. Data released on Friday showed the U.S. economy adding 178 thousand jobs in March, the most since December 2024, surpassing market expectations of 60 thousand. The unemployment rate also unexpectedly declined to 4.3 percent.

Amidst the dollar’s weakness, the EUR/USD pair edged up 0.06 percent during the week ended April 3. From the weekly low of 1.1443 touched on Monday, the pair climbed to a high of 1.1628 on Wednesday. The pair eventually closed the week at 1.1517, versus 1.1510 a week earlier. Flash inflation readings for March released on Tuesday had showed a reading of 2.5 percent, up from 1.9 percent in February and slightly below 2.6 percent that the markets had expected.

The British pound slipped half a percent against the greenback during the week ended April 3. The GBP/USD pair which had closed at 1.3260 on March 27 closed trading for the week ended April 3 at 1.3194. The weekly trading range was wider, between a low of 1.3158 recorded on Tuesday and a high of 1.3348 recorded on Wednesday.

The Australian Dollar jumped 0.26 percent against the U.S. Dollar during the past week that witnessed the release of the minutes of the RBA meeting. The minutes revealed a split RBA opting for a rate hike despite the war-led uncertainty. The AUD/USD pair rallied from the level of 0.6873 recorded on March 27 to close the week ended April 3 at 0.6891. During the week, the pair oscillated between a low of 0.6833 recorded on Monday and the high of 0.6964 recorded on Wednesday.

The U.S. Dollar retreated against the Japanese Yen during the week ended March 27 even as markets speculated on the possibility of a Japanese government action to arrest the yen’s decline. The USD/JPY pair closed the week at 159.59 versus 160.32 a week earlier, registering a decline of 0.46 percent. During the week, the pair oscillated between the high of 160.48 recorded on Monday and the low of 158.26 touched on Wednesday.

Ahead of a U.S.-imposed deadline for Iran to reopen the Strait of Hormuz, the six-currency Dollar Index is currently trading at 99.97 versus Friday’s closing level of 100.03. The EUR/USD pair is currently at 1.1561 versus 1.1517 on Friday. The GBP/USD pair is currently trading at 1.3244 versus 1.3194 on Friday. The AUD/USD pair is currently trading at 0.6929 versus 0.6891 on Friday. Amidst the dollar’s strength, the USD/JPY pair is now at 159.88 as compared with the level of 159.59 recorded at the end of the previous week.

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