Dollar Index Well Supported Above 101 Mark

Published on Jul 31, 2023 11:42

The dollar index stays firm, well above 101 mark on Monday weighing down most major currency peers. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 101.58, up 0.17%. Higher benchmark US treasury yields hovering near 4% as Fed leaves door open for further rate hikes are keeping the greenback well supported. Focus this week turns to key U.S. nonfarm payrolls data due on Friday that will shed some light on labor market conditions as Fed has stated that its future actions would be data dependent. Among the basket currencies, EURUSD is down 0.13% at $1.1036 amid renewed gains in the dollar. Last week, the European Central Bank (ECB) lifted interest rates by another quarter-point, raising the borrowing costs to their highest level in 23 years and kept its hike options open to curb high inflation. Meanwhile, GBPUSD is holding strongly above $1.28 mark and currently trading almost at $1.2856.