Dollar Index Lingers Near 103 Mark As Softer Than Expected US Data Brushes Aside Bets Of Federal Rate Hike

Published on Aug 31, 2023 11:46

The US dollar index is holding around 103 mark, sharply off its recent highs and off almost 1% this week. Currently, the counter is trading at 103.13, after hitting a near two week low below 103 mark earlier in the day. Weaker than expected data from the US that is reducing bets of a Federal rate hike is seen weakening the global currency. Private sector employment in the U.S. increased by slightly less than expected in the month of August, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July. Meanwhile, revised data released by the Commerce Department on Wednesday showed the increase in gross domestic product in the second quarter was downwardly revised to 2.1 percent from the previously reported 2.4 percent. NAR said its pending home sales index climbed by 0.9 percent to 77.6 in July after rising by 0.4 percent to a revised 76.9 in June. Benchmark bond yields are also trading lower on the day, dragging dollar lower. Among the basket currencies, EURUSD is holding around a two week high and currently quoting at $1.0924. GBPUSD is trading at $1.2713.