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The dollar reached a six-week high on Thursday, buoyed by solid U.S. economic data and safe-haven demand amid concerns about Middle East tensions and a dockworker strike. The greenback also benefited from more dovish expectations for central banks in other major currencies.

On Thursday, data revealed that U.S. services sector activity hit a 1-1/2-year high in September, with strong growth in new orders. However, services employment saw a decline, signaling a slowdown in the labor market.

The dollar’s index rose by 0.37% to 102.03, reaching 102.09, the highest since August 19. Improving economic data and hawkish comments from Federal Reserve Chair Jerome Powell have reduced expectations for a 50 basis-point rate cut at the Fed’s November 6-7 meeting.

Traders now see a 34% chance of a 50 basis-point cut, down from 49% a week ago. Friday’s jobs report for September is eagerly awaited as it may influence Fed policy, with economists expecting 140,000 job additions and a steady 4.2% unemployment rate.

The U.S. dollar received a safety bid following an attack by Iran on Israel and a major dockworker strike in the U.S., raising concerns over disruptions to oil supplies and supply chain logistics.

In contrast, the euro and sterling weakened on expectations of rate cuts by the European Central bank and the Bank of England, respectively. The euro fell by 0.28% to $1.1014, while sterling tumbled to $1.3109, the lowest since September 12.

Against the yen, the dollar hit a six-week high, with Bank of Japan officials signaling caution on rate moves to avoid harming the economy.

In the cryptocurrency market, bitcoin declined by 1.25% to $60,147.

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