Dollar Index Languishes Around 7-Week High As Fed Powell Dismisses Possibility Of Rate Cuts Anytime Soon

Published on Feb 01, 2024 10:48

The dollar index continues to extend gains near a seven week high on Thursday morning following Federal Reserve FOMC that decided to maintain the target range for the federal funds rate at 5.25 to 5.50 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run. The Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Powell reiterated in his post-meeting press conference and said he doesn`t think it`s likely the central bank will reach that level of confidence by the time of the March meeting. Investors now look ahead to the weekly jobless claims and the ISM PMI reports on Thursday, as well as the highly anticipated monthly jobs report on Friday. Currently, the dollar index is quoting at 103.41, up 0.31% on the day. Among the basket currencies, EURUSD and GBPUSD are staying pressure at $1.0826 and $1.2683 respectively.