DOLLAR INDEX STEADIES JUST BELOW 103 MARK; AWAITS FURTHER CUES ON FEDERAL STANCE

Published on Mar 13, 2024 11:46

The dollar index is lingering just below 103 mark after having breached the level yesterday following a higher than expected US inflation data. US consumer price index rose by 3.2% on a yearly basis vs the rise of 3.1% in January. The Annual Core CPI, which excludes volatile food and energy prices, also saw an increase, rising to 3.8% in February. However, this was below the January increase of 3.9%. Higher benchmark US treasury yields that climbed to 4.14% also dragged the greenback higher. The dollar index that measures the greenback against a basket of currencies climbed to a high of 103.32 in reaction to the data and is currently quoting at 102.92. Sticky inflation data has further added to uncertainty on timing of Federal rate cut stance. Investors now look ahead to US retail sales numbers and producer inflation data later in the week. Among the basket currencies, EURUSD and GBPUSD are trading close to the flat line at $1.0929 and $1.2791 respectively, paring some of its previous day losses.