The U.S. dollar weakened, approaching a two-month low at the beginning of the Asian trading session on Tuesday, as market participants anticipated the release of various economic data, including the postponed November U.S. jobs report. The dollar index, which assesses the currency’s strength relative to a group of six major competitors, decreased by 0.2% to 98.261, nearing its lowest levels since October 17. The Bureau of Labor Statistics is set to publish its anticipated combined employment reports for October and November later, after delays in data collection caused by the longest U.S. government shutdown in history. Additionally, a series of preliminary manufacturing indicators are also expected to be released.

According to Paul Mackel, the jobs data “will help give closure on how U.S. employment conditions were panning out during the federal government shutdown,” as noted in a research report. “The recent communication from the Fed provided clarity that the overall USD still faces challenges ahead.” The implied probability of a hold in rates at the U.S. central bank’s next meeting on 28 January stands at 75.6%, according to the reports.

Markets will face a variety of policy catalysts this week, with several central bank decisions on the horizon. The Bank of Japan is anticipated to raise rates by 25 basis points to 0.75%, while the Bank of England may implement a similar reduction to 3.75%. The European Central Bank is anticipated to maintain its current interest rates, in line with Sweden’s Riksbank and Norway’s Norges Bank. The dollar declined 0.1% to 155.07 yen, as market participants prepared for the upcoming BOJ decision on Friday.

The euro remained stable at $1.17535 as advancements were made in peace negotiations aimed at resolving the conflict in Ukraine, with the United States proposing NATO-style security assurances for Kyiv. The British pound remained unchanged at $1.3376. The dollar remained unchanged against the Chinese yuan in offshore trading, standing at 7.0371 yuan, marking its lowest point since October 3, 2024. The Australian dollar increased by 0.1% to $0.66445, remaining relatively stable after a private survey indicated a decline in consumer sentiment for December, following a positive shift the prior month. The kiwi dollar increased by 0.1%, reaching $0.5788. The Australian and New Zealand central banks have indicated that there will be no further rate cuts, which has strengthened the Antipodean currencies.