FX.co ★ Dollar Near 2-Month High

The dollar index climbed to 99.4 on Wednesday, its highest level in roughly two months, after the latest ADP report showed the private sector added 122K jobs in May. That figure topped market expectations and marked the strongest monthly gain since January 2025. The data signaled a labor market that continues to firm, bolstering expectations that the Federal Reserve may raise interest rates later this year. Earlier in the week, JOLTS figures revealed that job openings in April rose to their highest level since November 2024, underscoring the ongoing strength of labor demand. The greenback was also supported by rising geopolitical tensions in the Middle East, which lifted oil prices for a third straight session and intensified worries about renewed inflation pressures. Futures markets now assign an 85% probability to a quarter-point Fed rate hike by year-end, up from 60% just a week earlier.