DOLLAR INDEX COMMENCES 2024 WITH MODEST GAINS

Published on Jan 02, 2024 11:27

The dollar index is seen commencing the New Year with modest gains on the first trading session of 2024. The greenback is seen quoting at 101.18, up 0.15%. DXY shed over 2% in Year 2023. Increased expectations that Fed is done with hawkish moves on interest rates amid cooling inflation and the central bank is due for a rate cut early 2024 are seen weighing on the US dollar. Yields on US bonds are also holding near multi-month lows with 10-year yields at 3.88%. The notion is likely to keep greenback under pressure going forward too although upcoming data from US and geopolitical concerns could reignite safe haven demand for the global currency. Meanwhile, for the week, the investors are going to keep a close watch on the Federal Open Market Committee (FOMC) minutes ahead of the US Nonfarm Payrolls (NFP) report on Friday. Among the basket currencies, EURUSD and GBPUSD are seeing a muted start to the year with both pairs trading with a negative bias at $1.1064 and $1.2734 respectively.