Dollar Index Stays Cautious Ahead OF US Inflation Data

Published on Sep 13, 2023 11:38

The dollar index slides to a week`s low although still around a six month high on Wednesday as investors turn cautious ahead of crucial US inflation due later in the global day that could influence the Federal Reserve`s next policy steps. Firming benchmark US treasury yields amid expectation of Fed holding interest rates higher for longer are keeping the greenback supported. The dollar index that measures the greenback against a basket of currencies is quoting at 104.32, not far from recently attained 105 mark. Besides, any signs of higher inflation on the back of higher energy prices could further drive Federal rates and dollar even higher. Among the basket currencies, EURUSD is holding at $1.0747, up 0.11% on the day while GBPUSD is staying almost flat below $1.25 mark.