Dollar Index Cautiously Awaits US CPI data For Further Clarity

Published on Oct 12, 2023 11:38

The dollar index extended downside on Thursday after breaking below critical levels last week on the back of a fall in US treasury yields from multi-year highs. The benchmark 10-year bond yields in US declined after surging to best levels since 2007 while DXY came off an 11-minth high. Benchmark yields are seen quoting under 4.6%. The dollar index is currently quoting at 105.37, down 0.19% on the day and having lost around 1.5% after hitting a high of 107.05 at the start of the month. The greenback failed to hold momentum even as FOMC participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate and that that it was critical that the stance of monetary policy be kept sufficiently restrictive to return inflation to the Committee`s 2 percent objective over time. Besides, US Producer Price Index (PPI) also climbed in September, rising from 2.0% to 2.2% compared to the expected 1.6%. Going forward, however, crucial US consumer prices would be awaited. Among the basket currencies, EURUSD as well as GBPUSD are both on upside at $1.0659 and $1.2326 respectively.