Dollar Index Takes Charge Above 104 Mark

Published on Mar 22, 2024 14:49

Dollar Index Reclaims 104 Mark for the first time this month and is coming off previous day sharp losses. The bullish momentum in the greenback is coming on the back of improving labor market data and after FOMC decision to keep rates unchanged. The FOMC Committee reiterated that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Initial Jobless Claims for the week ending March 15 came in at 210K, lower than the 215K expected. Meanwhile, S&P Global`s Purchasing Managers Survey for March showed a slight decrease in the Services PMI, dropping from 52.3 to 51.7. Conversely, there was an increase in the Manufacturing PMI, rising from 52.2 to 52.5. The Composite PMI, which stood at 52.5 in February, showed a slight dip to 52.2. The dollar index also gained strength after Swiss National Bank cut its benchmark interest rate yesterday even as Fed is expected to keep interest rates unchanged for a while. The dollar index that measures the greenback against a basket of currencies was quoting at 104.11, up 0.43% on the day, and at a three-week high. Among the basket currencies, EURUSD and GBPUSD were bleeding in red, giving up their psychological levels and quoting lower by half a percent at $1.0847 and $1.2599 respectively.