FX.co ★ Dollar Index Rebounds

The dollar index climbed to 102 on Friday, its highest level in a week, partly retracing losses from the previous two sessions as traders awaited the key US jobs report and digested a global equity sell-off. Demand for safe-haven assets strengthened amid the market rout and mounting concerns over the AI-driven rally and elevated capital expenditure, as investors considered the possibility of a more restrictive regulatory landscape under a Democratic-led Congress. At the same time, expectations that the jobs report would confirm a stable labour market—while reinforcing the view that employment conditions are not fueling inflation—lent additional support to the greenback. Futures markets are currently pricing in roughly a 71% probability of a 25 bps Fed rate hike in December. The dollar recorded its largest gains against the euro, the British pound, and the Japanese yen. Still, despite Friday’s advance, the dollar remains down 0.3% for the week.