USD falls, euro at 7-week high

The euro rose near a seven-week high against the dollar, supported by data showing business activity in the euro zone continued to expand, while weaker-than-expected U.S. jobs data and expectations of further U.S. interest rate cuts weighed on the greenback.

The euro rose 0.43% to $1.1673 and touched $1.1677, its highest since Oct. 17. The Swedish krona gained 0.76% against the dollar to 9.371. Against the Norwegian krone, the dollar fell 0.6% to 10.061.

The euro hit a four-year high of $1.1918 on September 17.

The Japanese yen rose 0.47% against the USD to 155.16 JPY/USD.

The USD index fell 0.45% to 98.85 and at one point fell to 98.82 - the lowest level since October 29.

The greenback briefly fell further after the ADP employment report showed US private sector employment unexpectedly fell in November - falling by 32,000 jobs last month, compared with economists ' forecasts for a gain of 10,000 jobs in a Reuters survey.

The dollar has weakened in recent days amid speculation that White House economic adviser Kevin Hassett will take over as Federal Reserve chairman after Jerome Powell's term ends in May and will push for more aggressive interest rate cuts.

Business activity in the eurozone expanded at its fastest pace in two and a half years in November, as a strong services sector partly offset weakness in manufacturing.

Several other European currencies also strengthened on Wednesday, partly reflecting optimism about a possible end to the Russia-Ukraine conflict.

Russian President Vladimir Putin has accepted some US proposals to end the conflict in Ukraine while rejecting others, but Russia is ready to meet US negotiators “as many times as necessary” to reach an agreement, the Kremlin said on Wednesday, Reuters reported .

The Wall Street Journal reported on Tuesday that the Trump administration has canceled interviews with finalists for the Fed chair position - scheduled to take place this week - suggesting that President Trump may have already chosen Mr. Powell's successor.

Bond investors have expressed concerns to the US Treasury that Kevin Hassett could aggressively cut interest rates to accommodate President Donald Trump's wishes, according to the Financial Times .

Trump has repeatedly said the Fed is too slow to cut interest rates. However, the new Fed chairman will not be able to decide monetary policy on his own, which is determined by a committee.

US Treasury Secretary Scott Bessent expressed optimism about the economic outlook next year on Wednesday, but said interest rate cuts were still needed given weakness in some sectors, including real estate.

Market bets on the Fed cutting interest rates are as high as 89%, according to CME Group's FedWatch Tool.

Quang Trung

Source: https://baoninhbinh.org.vn/usd-giam-euro-cao-nhat-7-tuan-251204060049825.html