Dollar Pulls Back From Recent Peaks Although Downside Seen Limited

Published on Oct 05, 2023 12:07

The dollar index pulled back slightly on Thursday tracking a moderation in benchmark US treasury yields as mixed set of data reduced expectations that Fed would further increase interest rates. Yields eased from recent 16-year highs and dollar index was quoting at 106.40, down 0.12% on the day, and coming off 11 month high. The dollar index and yields however continue to stay near higher levels that could keep risky assets under pressure. US ADP report released on Wednesday showed that private-sector employers added 89K jobs in September, missing expectations and significantly lower from August`s upwardly revised reading of 180K. Moreover, the US ISM Services PMI declined from 54.5 to 53.6 in September. In the week ahead, investors would closely monitor non-farm payrolls and weekly jobless claims for further cues. Among the basket currencies, GBPUSD is holding well above $1.21 mark, up 0.11% on the day while EURUSD is quoting marginally higher at $1.0545, gaining respite from long awaited dent in dollar.