DOLLAR INDEX CLIMBS TO NEAR 2 AND HALF MONTH HIGH; US RETAIL SALES, ECB POLICY IN FOCUS

Published on Oct 17, 2024 11:35

The US dollar is staying largely unchanged on Thursday morning in Asia following a relentless rally since the start of October. Currently, the dollar index that measures the greenback against a basket of currencies is seen trading at 103.39, a near two and half month high. Investor await further data from US for clarity in Federal course of action. Besides, sliding currency peers in the USD basket amid expectations of an interest rate cut by major central banks are also keeping the index at elevated levels. Safe haven demand amid persistent Middle East tensions and apprehension ahead of US Presidential elections is also keeping the greenback supported. Among basket currencies, EURUSD and GBPUSD are quoting at $1.0879 and $1.2986 respectively. Yesterday, GBPUSD fell sharply following slower than expected UK inflation data below BoE�s target level for the first time in three years, prompting gains in the US dollar index. Ahead in the global day, US retail sales; ECB monetary policy statement would be watched.