Dollar steady, heads for weekly loss

The dollar stabilized today, but is headed for a weekly loss, as US President Donald Trump’s nomination of a temporary Federal Reserve seat has boosted expectations that a dovish candidate will replace central bank Chairman Jerome Powell when his term ends.

As growing concerns about weakening US economic momentum, particularly in the labor market, have bolstered hopes for interest rate cuts, the dollar has fallen 0.6% since the beginning of the week against a basket of other currencies.

The dollar index, which measures the greenback’s performance against six major currencies, held steady at 98.1 today.