Dollar Holds Steady Near Recent Lows, Eyes US Inflation Data

Published on Mar 11, 2024 12:51

The dollar index remained steady around 102.7 in early morning trades today, close to its lowest levels since mid-January. Investors were cautious ahead of key US inflation data, which could influence Federal Reserve monetary policy. Last week, the dollar fell over 1% after Fed Chair Powell indicated a need for more confidence in inflation reaching 2% sustainably before considering rate cuts. While February`s payroll figures exceeded expectations, revisions lowered job gains for January and December, and wage growth slowed more than expected. Market expectations do not foresee Fed rate cuts in March and May but predict a move in June. The dollar held its losses against major currencies but weakened against the yen, partly due to an upward revision in Japan�s Q4 GDP numbers. The country�s GDP expanded 0.4% and 0.1% year-on-year and quarter-on-quarter, respectively, in the three months to December, reversing from preliminary figures showing a 0.4% and 0.1% contraction during the period.