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05.06.202612:36:22UTC+00Dollar Set for Weekly Gain

The dollar index inched up to around 99.5 on Friday and remained on course for a weekly gain, as a still-robust labor market bolstered expectations that the Federal Reserve may need to keep monetary policy restrictive or even consider additional rate hikes. Fresh data showed the US economy added 172,000 jobs in May, far exceeding the consensus forecast of 85,000, while the unemployment rate held steady at 4.3%.

In addition, lingering uncertainty in the Middle East continued to fuel demand for safe-haven assets. President Donald Trump said peace talks were nearing their final stage and appeared unwilling to escalate tensions with Iran despite recent military clashes. However, Iranian Foreign Minister Abbas Araghchi said the negotiations had yielded no substantial progress, and Iran-backed Hezbollah rejected a US-brokered ceasefire proposal between Israel and Lebanon.

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