DOLLAR INDEX EXTENDS SLIDE UNDER 102 MARK; HEADS FOR WEEKLY DIP OF OVER 2%

Published on Dec 15, 2023 11:08

The dollar index extended further decline below 102 mark on Friday and is headed for a weekly drop. The index lost over 2% this week after Federal Reserve FOMC outcome. The Federal Open Market Committee (FOMC) on Wednesday decided to keep the benchmark overnight borrowing rate in a targeted range between 5.25% and 5.5% and the committee�s dot-plot projection foresees three rate cuts in 2024. The greenback was dragged sharply lower following a plunge in US treasury yields below 4% post the meeting. Meanwhile data overnight showed US Retail Sales grew 0.3% in November from a 0.2% drop in October, better than the market expectation of 0.1%. Currently, the dollar index that measures the greenback against a basket of currencies is holding at 101.51. Meanwhile, among the basket currencies, EURUSD and GBPUSD are steadying at $1.1040 and $1.2776 respectively after sharp gains late yesterday.