The dollar index held steady at 94.2 on Friday, trading close to a one-year high, as the Federal Reserve is likely to begin tapering its monthly bond-buying as soon as November and follow up with hiking rates next year. In recent data, the number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown, as the wave of COVID-19 infections began to ease. Traders now await the highly anticipated payrolls report due later in the day. On the political front, the Senate Thursday approved a bill to help Washington avoid a default on its debt in the next few weeks. The bill now moves to the House, where Speaker Nancy Pelosi is expected to take up the legislation within the coming days.
