DOLLAR INDEX LOSES MOMENTUM FROM 2-YEAR HIGH

Published on Jan 06, 2025 15:59

The dollar index is losing momentum from a two-year high on Monday as the US currency extends downside from end of last week. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 108.47, down 0.31% on the day and retreats further from its highest level since November 2022 touched last week. However, the yield on the benchmark 10-year US government bond reached its highest point since May 2 and is expected to keep the DXY supported. On the economic front, US ISM Manufacturing PMI improved from 48.4 to 49.3 in December, pointing to signs of economic resilience and potential for growth amid the optimism over US President-elect Donald Trump`s expansionary policies. Meanwhile, investors will keep an eye on this week`s important US macro releases, including the Nonfarm Payrolls (NFP) on Friday.