The US dollar is fluctuating near its highest level in three months.

The US dollar fluctuated near its highest level in three months on November 3rd, as investors awaited data releases this week to assess the state of the US economy and anticipate its potential impact on the Federal Reserve's tightening stance.

A 100 USD banknote. Photo: THX/TTXVN

Trading in Asia was relatively quiet at the start of the week due to a Japanese holiday, causing major currencies to fluctuate within narrow ranges, although most remained near recent lows against the strong US dollar.

The USD index stabilized at 99.73, near its highest level since August 2025.

The yen is near its lowest level in eight and a half months, due to the large interest rate differential between the US and Japan. The Japanese currency fell 0.1% to 154.1 yen/USD. It is also near record lows against the euro, most recently at 177.86 yen/euro.

The euro fell to its lowest level in three months, trading at $1.1536 per euro. The British pound declined 0.19% to $1.3145 per pound.

With the ongoing US government shutdown expected to delay the release of the non-farm payrolls report on November 7th, investors will be paying attention to other data, including the ADP employment figures and the Purchasing Managers' Index (PMI) released this week, to assess the economic situation.

Last week, the Fed lowered interest rates by 25 basis points as expected, but Chairman Jerome Powell signaled that this could be the final rate cut this year, citing the risks of taking further action without a clearer assessment of the economy.

Traders have lowered their expectations for a Fed interest rate cut in December and now estimate a 68% chance of a rate reduction.

In Japan, although Bank of Japan Governor Kazuo Ueda last week gave the strongest signal yet that interest rate hikes could occur as early as December, the market remains unenthusiastic about the central bank's gradual approach, especially given the Fed's increasingly hawkish stance.

The British pound is under pressure ahead of the Bank of England's policy decision this week, which is expected to keep interest rates unchanged. The currency is also depreciating due to increasing political pressure on Chancellor Rachel Reeves, and investor concerns about the impact of her November 2025 budget on businesses, households, and the economy in general.

Source: https://baotintuc.vn/thi-truong-tien-te/dong-usd-dao-dong-gan-muc-cao-nhat-trong-3-thang-20251103170212071.htm