By Tom Finn
LONDON (Reuters) – The dollar edged toward a 10-week high on Friday before monthly U.S. jobs data that investors hope will shed light on how much longer the Fed’s aggressive rate-hiking cycle will continue.
The greenback is outperforming other major currencies as the U.S. economy continues to grows strongly while recent data in other large economies, including the euro zone, has come in below expectations.
Investors are watching for signs of increasing U.S. inflation as companies including Amazon (NASDAQ:AMZN) AMZN.O raise minimum wages. Friday’s non-farm payrolls release for September will give new indications of wage growth and labor market strength.
The dollar index .DXY, which measures its performance against a basket of six currencies, was 0.1 percent higher on the day at 95.804.
Private payrolls data came in stronger than forecast on Thursday, pushing the yield on the benchmark 10-year U.S. Treasury note US10YT=RR to its highest levels since May 2011.