Dollar Index Nears 10 Month High, Approaches 106 Level

Published on Sep 27, 2023 12:22

The US dollar index has edged up near the 106 mark, hitting its highest level in ten months. Dollar has been rising persistently in last few days. The US Fed`s latest meeting, where it kept interest rates steady but hinted at another hike this year and fewer cuts in 2024, has boosted the US currency as markets looked at the possibility of the US interest rates staying at record highs for a considerable period. Market attention is now on the upcoming release of the PCE price index, the Fed`s preferred inflation gauge, on September 29. The US 10 year bond yields have surpassed 4.5% to approach 16 month highs. Dollar has also been boosted by European central bank hinting at a pause in its interest rate raising spree. Eurozone interest rates have been hiked to a record high by the European Central Bank (ECB) earlier this month but the ECB signalled that the latest hike could be the last for now.