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Momentum In Dollar Index Fades Ahead Of Non-Farms; Sustains Hold Above 106 Mark

Published on Oct 06, 2023 11:50

The dollar index lost some momentum after the insistent rally but continues to hold above 106 mark ahead of the crucial monthly jobs report. The retreat in dollar is in tandem with benchmark US treasury yields that paused its relentless rally to hit 16-month highs. Yields eased slightly to 4.71% after ADP data showed that private job growth totaled 89,000 in September, the least since January 2021 and well below the 153,000 expected. However, improving economic data from US is giving the central bank much needed space to keep interest rates higher for prolonged period, supporting dollar perch at high levels. The dollar index that measures the greenback against a basket of currencies is trading at 106.24, up 0.16% on the day. Investors are closely watching the non-farm payroll to get clarity over Fed`s future course of action. Among the basket currencies, EURUSD is trading lower by 0.11% on the day at $1.0571 whereas GBPUSD dropped to as much as $1.2179, down 0.16% on the day.

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