Dollar Index Stays Well Supported Above 103 Mark Ahead Of Jackson Hole

Published on Aug 21, 2023 12:11

The dollar index continues to hold well above 103 mark ahead of Federal Reserve Chair Jerome Powell`s address at the central bank`s annual symposium in Jackson Hole, Wyoming later this week. The Fed statements sounded hawkish in its recent policy as the central bank reinstated that upside risk to inflation remains and further interest rate tightening may be warranted. Waning risk sentiment after China trimmed its 1-year lending rate by 10bps to 3.45% and left its 5-year rate unmoved at 4.2% to aid its faltering economy is also aiding dollar sentiments. Currently, the dollar index that measures the greenback against a basket of currencies is trading marginally higher at 103.30. Among the basket currencies, EURUSD is quoting at $1.0896 whereas GBPUSD is down 0.1% at $1.2735 after a fall in German producer prices.