Dollar Index Picks Fresh Bids Ahead Of FOMC Minutes

Published on Jul 05, 2023 11:16

The dollar index is picking fresh bids on Wednesday, bracing for the Fed minutes due later in the global day. Fed Chair Jerome Powell had reiterated plan for more hikes in its previous policy meet. But recent data has showed deteriorating economic conditions in the US and globally adding to apprehension of future Federal course of action. ISM data released this week showed that US manufacturing activity for June contracted the most since May 2020 amid weakening demand. However, US core inflation staying stubbornly high is adding to case for a rate hike. Besides Fed minutes, investors also look ahead to the key monthly jobs report, ISM Services PMI data later this week for further clues on the economy. Meanwhile, benchmark US 10 year treasury yields are staying higher by 1% at 3.85% while the dollar index that measures the greenback against a basket of currencies were up 0.2% at 102.87.