Dollar Drops Despite Strong Jobs Report as Rate Hike Odds Rise to 60%

The US dollar experienced a decline of 0.7% this week, despite rebounding on the back of a strong non-farm payrolls report.

The data showed that the Federal Reserve may raise interest rates later this month, with traders putting the probability at about 60%, up from around 50% before the release of the payroll report.

Noah Buffam, a strategist at CIBC Capital Markets, noted that next week's consumer price data will be crucial in determining the dollar's performance going forward and its impact on the Fed's rate decision for September.