DOLLAR INDEX ON BACK FOOT AHEAD OF FED POWELL`S SPEECH AT JACKSON HOLE

Published on Aug 24, 2023 11:28

The dollar index stays muted on Thursday as investors cautiously await Federal Reserve Chair Jerome Powell`s speech later in the global day at the central bank`s annual policy event in Jackson Hole, Wyoming. US benchmark treasury yields eased dragging the dollar off its recent highs after data showed that US business activity approached stagnation point in August, with growth at its weakest since February as demand for new business in the vast service sector contracted. S&P Global said its flash U.S. Composite PMI index, which tracks manufacturing and service sectors, fell to a reading of 50.4 in August from 52 in July, the biggest drop since November 2022. The dollar index that measures the greenback against a basket of currencies is quoting at 103.26, down 0.07% on the day but still lingering above the crucial mark. Among the basket currencies, EURUSD was up 0.11% on the day at $1.0884 while GBPUSD was at $1.2727, up 0.07% on the day.