Dollar drops, investors expect jobs data for rate hike hints

The dollar fell on Friday morning in Asia but was on track for its two-straight weeks of gains. Investors now expect the latest United States’ jobs report for hints on the Federal Reserve’s interest rate hike schedule.

The U.S. Dollar Index Futures that measures the greenback against other major currencies declined 0.02% to 94.323 by 12:57 AM ET (4:57 AM GMT).

The USD/JPY pair nudged 0.08% lower to 113.66.

The AUD/USD pair slid 0.04% to 0.7396, while the NZD/USD pair shed 0.09% to 0.7095.

The USD/CNY pair tallied an increase of 0.05% to 6.4004, while the GBP/USD pair plunged 0.02% to 1.3495.

The Bank of England (BOE) disclosed its policy decision yesterday, keeping its interest rates at 0.10%. 

Investors were forced to recalibrate monetary policy expectations this week after key central banks declined to raise interest rates sooner than expected.

On Wednesday, European Central Bank President Christine Lagarde downplayed market expectations for an interest rate hike as soon as October 2022, saying that such a move would be very unlikely.

Investors are now waiting for the latest U.S. jobs report due today. Favorable job market figures may influence the Fed’s decision on raising its interest rates.