The U.S. dollar fell to a 2-month low in mid-week after data confirmed the view that the Federal Reserve may not need to raise rates further, writes Reuters.

The monthly U.S. jobs report is only 2 days away and therefore market activity is a bit more subdued than in recent weeks.

As other central banks raise rates following the Fed, the dollar is likely to lose most of its gains relative to other currencies and weaken this year, according to a survey of currency strategists.

The dollar index, which measures the U.S. currency against six other currencies, hit a 2-month low of 101.43 after data released Tuesday showed that U.S. job openings fell in February to their lowest level in nearly 2 years, a sign that a higher rate is starting to worsen the labor market.

The monthly Job Openings and Turnover Survey (JOLTS) showed that the number of job openings fell by 632,000 to 9.9 million on the last day of February.

Analysts believe the JOLTS data could be the first sign of weakness in the U.S. labor market, which is important because it will now be very difficult for the Fed to argue that it will suspend its tightening cycle.

The dollar has been declining steadily since September, and has fallen in 16 of the last 25 trading sessions.

The euro remained at $1.0948, below Tuesday’s two-month peak, while the pound fell 0.2% to $1.2479, hitting a 10-month high the day before.

The dollar posted its third daily loss against the Japanese yen, falling 0.3% to $131.20, while the Australian dollar fell 0.8% to $0.67.

Earlier we reported that Wall Street futures were rising after the U.S. Federal Reserve meeting.