The United States (US) dollar sagged to near a two-month low at the start of ‍the ‌Asian trading session on Tuesday, December 16, 2025, as markets awaited the release of a slew of economic data, including the ⁠delayed November jobs report.

The dollar index, which measures ‌the currency’s strength against a basket of six key rivals, was down 0.2 per cent at 98.261, approaching the lowest levels since October 17, 2025.

The Bureau of Labour Statistics will release its long-awaited combined employment reports for October and November later, following delays to data ⁠collection during the longest U.S. government shutdown in history, while a raft of preliminary manufacturing indicators are also due for release.

The jobs data “will ​help give closure on how U.S. employment conditions were panning out ‌during the federal government shutdown,” Paul Mackel, global head ⁠of FX research at HSBC, wrote in a research report.

“The Fed’s messaging last week gave us reassurance that the broad USD is not out of the woods yet.” Fed funds futures are pricing an implied 75.8 per cent ​probability of a hold in rates at the U.S. central bank’s next meeting on January 28, 2025, unchanged from a day earlier, according to the CME Group’s FedWatch tool.

Markets will have to contend with a host of other policy catalysts during the week, with several central bank decisions due, including the Bank of Japan, which ​is expected ‍to hike rates by 25 basis ​points to 0.75 per cent, while the Bank of England may make an equal-sized cut to 3.75 per cent.

The European Central Bank is expected to keep interest rates on hold, alongside Sweden’s Riksbank and Norway’s Norges Bank.

Against the yen, the dollar eased 0.1 per cent to about Ksh127 as traders braced for the BOJ’s decision on Friday.

The euro was steady at Ksh189 as peace talks to end the war in Ukraine made progress, with the United States offering to provide NATO-style security guarantees ⁠for Kyiv. The British pound was flat at Ksh230.

Against the Chinese yuan trading offshore, the dollar was flat at Ksh128.7, its weakest levels since October 3, 2024.

The ​Australian dollar edged up 0.1 per cent to Ksh57.2, though the currency was little changed following a private survey showing that consumer sentiment slid in December after turning positive for the first time the previous month. The kiwi dollar added 0.1 per cent to Ksh43.2.

Both the Australian and New Zealand central banks have shut the door ‌on any further rate cuts, providing momentum to the Antipodean currencies.

Cryptocurrency markets made tepid gains after a pullback on Monday. Bitcoin was up 0.2 per cent at Ksh11,150, while ether edged 0.6 per cent higher at Ksh379,000.