Dollar Index Slips Below 104 Mark; Fed Minutes, US CPI Awaited

Published on Apr 09, 2024 13:40

The US dollar index eased back below 104 mark and is steadying at similar levels on Tuesday morning in Asia as possibility of a near term rate cut diminishes. Recent comments from Fed officials after Friday�s jobs report reiterated the seemingly unwavering strength of the U.S. labor market. Focus now turns on the upcoming March minutes, inflation report and speeches from Federal Reserve officials to gauge the potential rate-cut timetable. Last week the Minneapolis Fed President Neel Kashkari suggested that if inflation remains high, rate cuts may not be necessary in 2024. Fed Chair Jerome Powell also echoed this, stating that more evidence of sustainable inflation near the 2% target is needed before considering rate cuts. The dollar index that measures the greenback against a basket of currencies is quoting at 103.96, marginally up on the day. Among the basket currencies, EURUSD and GBPUSD are staying marginally lower at $1.0883 and $1.2658 respectively.