Dollar Index Reclaims 106 Mark On US Inflation Report But Fails To Hold Momentum

Published on Oct 13, 2023 11:15

The dollar index jumped overnight to reclaim 106 mark for the first time in a week after a report on US inflation showed consumer prices rose more than expected, adding to hopes that the Federal Reserve would maintain higher interest rates for prolonged period. The dollar index, that measures the U.S. currency against six others, jumped 0.85% to 106.550 in its biggest single-day gain since March 15 in overnight trades but failed to hold on to momentum and is currently quoting lower by 0.19% at 106.17. Uncertainty over further course of action is likely keeping the greenback subdued. The Labor Department said its consumer price index climbed by 0.4% in September after increasing by 0.6% in August but above expectations for a 0.3% rise. Higher energy prices contributed to the bigger than expected monthly increase, jumping by 1.5% in September after soaring by 5.6% in August. Among basket currencies, EURUSD is holding in positive at $1.0577, up 0.2% on the day whereas GBPUSD is up 0.26% at $1.2210.