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FOREX-Dollar under pressure as traders return after Labor Day break
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FOREX-Dollar under pressure as traders return after Labor Day break
Sep 1, 2025 6:12 PM

SINGAPORE, Sept 2 (Reuters) - The U.S. dollar made a

limp recovery in early Asian trade after days of selling, ahead

of the U.S. markets reopening later on Tuesday after the Labor

Day holiday.

The dollar index was last up 0.1% at 97.709, having

touched its lowest on Monday since 28 July after five

consecutive days of loss, as investors sought alternative havens

such as gold where prices traded just shy of record levels.

Traders have sold the greenback as U.S. President Donald

Trump's attacks on the Federal Reserve, including his decision

to remove Governor Lisa Cook, raise fear that the White House is

undermining the central bank's independence at a time when the

case to begin cutting interest rates is far from clear.

"The Fed could be ominously poised to start its rate-cutting

cycle," said Chris Weston, head of research at Pepperstone Group

in Melbourne. "People see the attraction of being in gold."

Bullion was on track to notch a sixth day of gain after

reaching its highest price since 21 April on Monday. It was last

up 0.2% at $3,482.55 a troy ounce whereas silver

retreated 1.2% after reaching a 14-year high.

Against the yen, the dollar was 0.1% stronger at 147.33 yen

, remaining in the trading channel it has sat in since

the start of August.

U.S. economic data for August will be in focus later this

week as market watchers try to ascertain the extent to which

Trump's policies are affecting industrial activity and the

labour market. Data due include ISM's manufacturing and services

purchasing managers' indices and the non-farm payrolls report.

The euro edged lower, last off 0.03% at $1.1707 so

far in Asia, after data released on Monday showed the HCOB euro

zone manufacturing PMI expanded in August for the first time in

three years. Consumer price data for the same month is due later

on Tuesday.

The Australian dollar paused for breath after five days of

gain, last trading down 0.1% at $0.6549, near its

highest in more than two weeks.

The kiwi traded flat at $0.5903 after a three-day

winning streak, which has pushed the currency to a two-week

high.

Sterling traded at $1.3539, down 0.1% so far on the

day, retreating from a two-week high reached on Monday.

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