Dollar Index Sees Mild Pull Back From 15-Month Lows

Published on Jul 19, 2023 11:21

The dollar index is seen pulling back slightly on Wednesday following a sharp plunge over the last two weeks to its lowest level in 15 months after consumer price inflation printed a moderating trend, reducing bets of a hawkish Federal stance. The dollar index that measures the greenback against a basket of currencies fell to April 2022 lows below 100 mark and is currently quoting at 99.73, up 0.1% on the day. Next week`s FOMC statement is expected to throw further clarity on the onward Federal stance. Overnight data showed US retail sales came in weaker than expected. The Commerce Department said retail sales edged up by 0.2 percent in June after climbing by an upwardly revised 0.5 percent in May. However, core retail sales, which exclude automobiles, gasoline, building materials and food services, advanced by 0.6 percent in June after rising by 0.3 percent in May. Meanwhile, industrial production slid by 0.5 percent in June while U.S. business inventories registered a modest increase in the month of May. The report said business inventories rose by 0.2 percent in May after inching up by a downwardly revised 0.1 percent in April. Among the dollar basket currencies, EURUSD is largely flat at $1.12 while GBPUSD is down 0.15% at $1.30.