DOLLAR INDEX JUST SHORT OF RE-CAPTURING 103 MARK

Published on Oct 11, 2024 11:28

The US dollar index inched lower but continues to hover around a two month high on Friday tracking sustained strength in US benchmark treasury yields. A surge in US jobless claims reinforced expectations of a rate cut but slightly higher than expected inflation data reduced possibility of an aggressive stance. Data yesterday showed US Consumer Price Index (CPI) for September rose by 2.4% on year, exceeding estimates of 2.3%, though still lower than August`s figure. Core CPI increased by 3.3% annually, surpassing forecasts and August`s 3.2%. Initial Jobless Claims for the week ending October 5 rose to 258K, up from 225K the previous week, and up highest in over a year. US benchmark 10 year yields were quoting at 4.06% while dollar index that measures the greenback against a basket of currencies was seen trading at 102.68 after having climbed to near 103 mark late yesterday. Investors now look ahead to US producer inflation data on Friday to gather further insights on inflation that could determine Fed action going forward. Among basket currencies, EURUSD and GBPUSD edged up to $1.09 and $1.30 respectively.