Dollar Index Loses Momentum As Fed Holds Rates

Published on Nov 02, 2023 11:57

The dollar index lost momentum and stayed lower by over half a percent on Thursday as Fed kept interest rates steady for the second time although the central bank left the door open to further monetary tightening amid persistently high inflation. Easing treasury yields currency off recent highs at 4.7% also led dollar lower. The dollar index that measures the greenback against a basket of currencies was trading at 106.23, down 0.5% on the day. Indications from the Fed that end of the rate cycle is near triggered a sell-off in dollar. Markets will now focus October Nonfarm Payrolls figures for further cues. Among the basket currencies, EURUSD was up 0.53% at $1.0618 while GBPUSD was trading at $1.2183, higher by 0.41% on the day.