Dollar Index Stays Bearish; Lingers Just Under 106 Mark

Published on Oct 10, 2023 11:51

The dollar index lost impetus and continues to linger below 106 mark tracing lower benchmark US treasury yields following dovish comments from the Federal Reserve. Federal authorities in recent times are indicating reduced expectations of interest rate hikes. Fed Vice Chair Philip Jefferson said the central bank would need to "proceed carefully" given the recent rise in yields. The dollar index gave up most of its recent gains but is still holding close to 106 mark as Middle East tensions are increasing safe haven bid for the greenback. Currently, long term treasury yields are near 4.7% while dollar index holds at 105.89, up 0.07% on the day. Investors now look ahead to Fed minutes and US inflation data this week that would provide further clarity.