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Dollar Index Lingers Around 104 Mark; Fed`s Powell Prepared To Raise Rates Further

Published on Aug 28, 2023 11:19

The dollar index witnessed a slight pull back during Asian trades on Monday following a sharp spike to a three month high on Friday. The dollar index retreated a bit from the sharp spike although it continues to steady close to 104 levels as Powell stated in its latest speech at Jackson Hole that Fed is prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until inflation moves sustainably lower towards the objective as it remains too high. He further stated that Fed will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data. The dollar index that measures the greenback against a basket of currencies was trading marginally lower at 103.96. Investors now wait the monthly jobs report, the PCE price index and ISM Manufacturing PMI in the US due this week. Among the basket currencies, EURUSD took small respite from dollar weakness and is trading at $1.0824 whereas GBPUSD is quoting at $1.2608.

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