FX.co ★ Dollar Holds Near Two-Month High

The dollar index hovered around 99.4 on Thursday, holding near a two‑month high as stronger‑than‑expected US labor market data bolstered expectations of a more restrictive Federal Reserve policy stance. The latest ADP report showed private-sector employment rising by 122K in May, beating forecasts and marking the strongest gain since January 2025. Earlier in the week, JOLTS figures indicated that job openings climbed in April to their highest level since November 2024. Investors are now looking ahead to Friday’s nonfarm payrolls release for additional signals on labor market conditions. The dollar also remained supported by escalating tensions in the Middle East, which have kept oil prices elevated and added to inflationary pressures. Futures markets now price in an 85% chance of a quarter-point Fed rate increase by year-end, up from 60% just a week ago.