The US dollar maintained a steady position on Thursday as investors carefully evaluated mixed economic signals ahead of Friday's highly anticipated nonfarm payrolls report. Rising geopolitical tensions continued to influence market sentiment, keeping major currency movements subdued across trading sessions.

Currency Market Performance

Major currency pairs demonstrated minimal volatility during early Asian trading hours. The following table shows key exchange rates:

The dollar index, measuring the US currency against six major rivals, remained steady at 98.737 and appeared set for a modest weekly gain.

Mixed Economic Indicators Paint Complex Picture

Thursday's economic data presented contrasting signals about the US economy's health. Labour market indicators showed concerning trends, with job openings falling more than expected in November while hiring activity continued to ease. Analysts described this environment as a "no hire, no fire" state, suggesting employers remain cautious about both recruitment and layoffs.

However, services sector activity provided a positive counterpoint, unexpectedly picking up in December. This improvement suggested the economy concluded 2025 on solid footing, creating a mixed narrative for policymakers and investors.

"The latest U.S. data releases paint a mixed picture of the economy," said Lloyd Chan, senior currency analyst at MUFG. "For the Fed, this mix of signals could reinforce a cautious approach."

Federal Reserve Policy Expectations

Market participants are currently pricing in at least two rate cuts from the Federal Reserve this year, despite the central bank indicating in December just one additional cut for 2026. The mixed economic signals have created uncertainty about the Fed's policy trajectory, with most markets expecting the central bank to maintain current rates in January.

Matthias Scheiber, senior portfolio manager and head of the multi-asset team at Allspring Global Investments, suggested fewer rate cuts may materialise than currently expected. "We might not see as many Fed rate cuts as expected in 2026, mainly because the country's robust growth does not justify aggressive cutting," Scheiber explained.

Geopolitical Factors and Market Outlook

Despite ongoing geopolitical concerns, including US intervention in Venezuela and rising tensions between China and Japan, currency markets have remained relatively calm throughout the week. However, attention is turning to potential Supreme Court decisions regarding tariff policies.

Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, highlighted the importance of possible Supreme Court rulings on tariff policies. "If there is a decision that the tariffs are constitutional, this takes the demand for refunds off the table. This would be USD positive," Newnaha noted.

The dollar is recovering from its worst annual performance since 2017, with analysts predicting another year of decline, though expecting a more modest drop compared to recent performance. Market focus remains firmly fixed on Friday's nonfarm payrolls report, which could provide crucial direction for both currency markets and Federal Reserve policy expectations.

Dollar Industries Limited , a prominent player in the Indian textile industry, has received formal reaffirmation of its credit ratings from Acuite Ratings Research Limited. The company disclosed this development to stock exchanges on December 18, pursuant to Regulation 30 of SEBI listing regulations.

Updated Credit Rating Details

Acuite Ratings has reaffirmed Dollar Industries' strong financial position across its bank facilities. The rating action covers an increased facility amount compared to previous assessments:

Bank-wise Facility Breakdown

The reaffirmed ratings cover Dollar Industries' diversified banking relationships across major financial institutions:

Financial Strength and Implications

The ACUITE AA- rating for long-term instruments indicates a high degree of safety regarding timely servicing of financial obligations, carrying very low credit risk. The ACUITE A1+ rating for short-term instruments suggests a very strong degree of safety and lowest credit risk.

The rating letter, issued on December 17 and valid until November 1, 2026, confirms the company's robust financial health. The stable outlook indicates that Dollar Industries is well-positioned to maintain its financial performance in the near to medium term.

Regulatory Compliance

Company Secretary Abhishek Mishra communicated the rating reaffirmation to both NSE and BSE, ensuring full compliance with disclosure requirements. The rating action reinforces Dollar Industries' strong market position in the textile industry and provides confidence to investors and lenders about the company's creditworthiness.