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U.S. Dollar Continues To Show A Lack Of Direction

Extending the lackluster performance seen earlier in the week, the value of the U.S. dollar has continued to show a lack of direction on Wednesday.

The U.S. dollar index has spent the day lingering near the unchanged line and is currently down just 0.06 points or 0.1 percent at 108.72.

Meanwhile, the greenback is trading at 138.96 yen compared to the 138.79 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0051 compared to yesterday's $1.0015.

The dollar still continues to hover near two-year highs as traders weigh the likelihood of further interest rate hikes against the dollar's appeal as a safe haven.

In remarks earlier this morning, Cleveland Federal Reserve President Loretta Mester said she expects the Fed to raise interest rates above 4 percent by early next year.

Mester also said she does not anticipate the Fed cutting interest rates in 2023, with the central bank likely to keep rates at an elevated level in an effort to combat inflation.

Meanwhile, payroll processor ADP released a report showing private sector employment in the U.S. increased by much less than expected in the month of August.

ADP said private sector employment rose by 132,000 jobs in August after jumping by nearly 270,000 jobs in July. Economists had expected employment to surge by 288,000 jobs.

"Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy's conflicting signals," said ADP chief economist Nela Richardson. "We could be at an inflection point, from super-charged job gains to something more normal."

ADP suspended its jobs report for June and July as the firm revamped its methodology and entered into a partnership with the Stanford Digital Economy Lab.

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