Dollar Index Spurts To Over Two Month High On Hawkish FOMC Minutes

Published on Aug 17, 2023 10:12

The dollar index renews gains to over two month highs on Thursday after Fed reiterates hawkish stance on interest rates to calm elevated inflation levels. The Fed minutes reiterated that inflation remains elevated further stating that additional policy firming may be appropriate to return inflation to 2 percent over time. The Fed raised the fed funds rate by 25bps to 5.25%-5.5% in July, the highest since January 2001. Hawkish comments from the FOMC minutes overnights dragged treasury yields and dollar higher. The benchmark US 10-year Treasury yields rose past the 4.25% mark, it`s highest since November 2007. The dollar index also surged up towards 103.50 overnight and is currently quoting at 103.44, up 0.12% on the day. Among the basket currencies, EURUSD gave up $1.09 levels and dropped by 0.16% to trade at $1.088. GBPUSD also corrected although marginally and is holding at $1.2722.