Dollar Index Stays Cautious, Awaiting Further Cues From Fed

Published on Sep 20, 2023 11:35

The dollar index stays cautiously steady on Wednesday awaiting crucial Federal monetary policy decision. Markets are taking negative cues from overnight equities as investors stay focused on the conclusion of a two-day Fed meeting later in the day. The dollar index that measures the greenback against a basket of currencies pulled back slightly this week although it continues to hover around a six month high of 104.82 amid rising benchmark US bond yields. US yields hit a 16-year high ahead of Federal Reserve`s policy meeting on Wednesday with benchmark 10-year Treasury yield touching a session high of 4.37%, its highest level since early November 2007. The five-year Treasury yield also reached a 16-year high of 4.52% per cent, while the yield on the two-year note hit a two-month high of 5.11%. Among the basket currencies, EURUSD is trading at almost flat at $1.0721 while GBPUSD is also largely unmoved on the day at $1.2388.