DOLLAR INDEX EXTENDS UPSIDE TO FRESH 4-MONTH HIGHS WITH FOCUS ON US INFLATION DATA FOR DIRECTIONAL CUES

Published on Nov 12, 2024 14:53

The US dollar index is staying upbeat, extending upside to hit fresh four month highs and approaching the next psychotically 106 mark. The greenback has been on a relentless rally, boosted by Trump�s victory in the US presidential election. However, the rally took a brief pause after US Federal Reserve meeting outcome wherein Fed reduced the interest rates by 25-basis points in line with market expectation. Thereafter US benchmark treasury yields and dollar have been on a surge. Yields on the 10-year note are quoting at 4.36% while dollar index that measures the greenback against a basket of currencies are at 105.68, up 0.21% on the day. Markets now brace for US inflation data for October to be unveiled tomorrow and Fed chair�s speech later this week for further directional cues. Among basket currencies, EURUSD and GBPUSD are quoting lower by around 0.2%-0.3% at $1.0642 and $1.2819 respectively.