REUTERS, Singapore

The dollar sank to an almost seven-week low on Tuesday as investors braced for US data revisions that could show the jobs market in worse shape than initially thought, shoring up the case for even deeper Federal Reserve interest rate cuts.

The dollar index fell to lows of 97.323 in Asia trade, representing the weakest level for the greenback since July 24, ahead of the release of preliminary benchmark revisions, opens new tab for jobs data covering the period from April 2024 to March 2025.

Economists anticipate a downward revision of as much as 800,000 jobs, which could signal that the Fed is behind the curve in efforts to achieve maximum employment.

“The employment numbers are getting worse and worse at a heavy rate,” said Alex Hill, managing director at Electus Financial in Auckland. “That’s translating into a weaker US dollar slowly, but we expect that to accelerate.”

Advisors to the Trump administration are preparing a report laying out the alleged shortcomings of the Bureau of Labor Statistics, which they may publish in coming weeks, The Wall Street Journal, opens new tab reported on Tuesday, citing unnamed sources.

Last month US President Donald Trump fired BLS Commissioner Erika McEntarfer, accusing her, without evidence, of faking the employment data.

US bond investors say they are seeing cracks emerging in the outlook, warning the market is underpricing long-term fiscal risks and the danger posed by White House pressure on the central bank to cut interest rates.

Traders’ expectations of more aggressive Fed easing are gradually increasing. Pricing of Fed funds futures on Tuesday implied an 11.6 percent probability of a jumbo 50 basis point rate cut at the Fed’s September meeting, compared with an 11 percent chance on Monday, according to the CME Group’s FedWatch tool, with a cut of at least 25 basis points viewed as a certainty.