Dollar Index Pulls Back Mildly From 105 Mark; Strong US Data Supports

Published on Sep 15, 2023 12:07

The dollar index witnessed a mild pull back in Asia today following a surge to a one-week high above 105 mark in the previous session. Improved economic data from the US overnight increased expectations that Fed could hold interest rates at higher levels for long. U.S. retail sales for August were boosted by higher gasoline prices, resulting in a 0.6% month-on-month increase, surpassing the estimated rise of 0.2%. Producer Price Index (PPI), which accelerated to 0.7% in August from the 0.4% previous and the annual rate climbed to 1.6%, faster than projections of 1.2% and 0.8% in July. US Initial Jobless Claims also rose less than expected, to 220K during the second week of September as compared to the 217K previous. The dollar index yesterday hit a high of 105.10 and is currently quoting at 104.88, registering a modest withdrawal from overnight levels but continues to hover around six-month highs. Among the basket currencies, EURUSD is up 0.24% at $1.0704 whereas GBPUSD is quoting at $1.2430, up 0.22% on the day.