The Dollar reached a close to two-decade high in advance of the US nonfarm payrolls report, as markets awaited confirmation of promising jobs data which could advance hopes of a hawkish stance from the US Fed at the next interest rates meeting.
US Fed chair Jerome Powell previously commented at the Jackson Hole convention that a tight labour market was one of the factors boosting the organisation’s movement towards continued aggressive rate hikes, with the Fed aiming for a softening in the labour market to tackle spiking inflation, which currently stands at 8.5% in the US.
Analysts are currently estimating a 300,000 jobs growth in August, adding to the stretch of positive employment data over the past couple of months for the States.
One Pound equated to 1.1567 Dollars and one Euro equated to 0.9991 Dollars in late morning trading on Friday.