Dollar Index Steadying Below 104 Mark; FOMC Minutes Dismiss Near-Term Possibility Of Rate Cut

Published on Feb 22, 2024 10:51

The dollar index is steadying below 104 mark on Thursday even as FOMC minutes dismisses near-term rate cuts and are keen on keeping rates at restrictive levels. FOMC minutes showed policymakers were concerned about the risks of cutting interest rates too soon. Members agreed that they did not expect that it would be appropriate to reduce the target range until they have gained greater confidence that inflation is moving sustainably toward 2 percent. The dollar index that measures the greenback against a basket of currencies were quoting at 103.83, down 0.08% on the day. Moreover, member of the Federal Reserve Board of Governors Michelle Bowman insisted on Wednesday that this is "certainly not" the most appropriate time to start cutting interest rates and change into a less restrictive monetary policy. Thus, the dollar index is likely to revive gains after the current pause. Among basket currencies, EURUSD and GBPUSD are benefiting from dollar weakness and are quoting at $1.0841 and $1.2643 respectively.