Dollar Steady as U.S. Labor Market Shows Strength

The dollar remained stable as recent data indicated a robust U.S. labor market, providing the Federal Reserve with room to maintain interest rates in the short term. According to RTHK, the dollar index was around 97.9 at the close of trading in New York, marking a 0.2% increase and extending gains for four consecutive trading days. The euro fell 0.1% against the dollar, trading at $1.1768, following reports that European Central Bank President Christine Lagarde might leave before her eight-year term ends. The British pound dropped approximately 0.3% against the dollar, trading at $1.3456, while the dollar rose 0.1% against the yen, reaching 155.04 yen. Last week, the number of initial unemployment claims in the U.S. decreased by 23,000 to 206,000, which was lower than the expected 225,000. Minneapolis Federal Reserve Bank President Neel Kashkari stated that the labor market remains resilient, and the Federal Reserve is close to achieving its dual goals of full employment and stable prices. Interest rate futures suggest that the market sees less than a 50% chance of a rate cut of at least 0.25% before the Federal Reserve's June meeting.