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Dollar Index Reclaims 100 Mark; FOMC Awaited

Published on Jul 21, 2023 11:15

The dollar index reclaimed 100 mark for the first time in more than a week on Friday as improving jobs data from the US paved way for a Federal rate hike. First-time claims for U.S. unemployment benefits unexpectedly dipped in the week ended July 15th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims slipped to 228,000, a decrease of 9,000 from the previous week`s unrevised level of 237,000. Meanwhile, the Philly Fed came in at -13.5 in July and Existing Home Sales fell 3.3% in June. Waning risk appetite is also seeing renewed demand for the US currency. US benchmark treasury yields climbed above 3.8% dragging greenback higher. The dollar index that measures the greenback against a basket of currencies that was wallowing near 15 month lows early this week is currently quoting at 100.53, down marginally on the day. Although the index regained 100 mark, it faces strong resistance near the levels to break sharply above the level. Investors now await FOMC meeting next week for further clarity of interest rates. Among the basket currencies, EURUSD is up 0.09% at $1.1168 while GBPUSD is trading at two week low of $1.2878.

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