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US Dollar Index Fails To Sustain Above 106 Mark As Powell Shuns Rate Hike Possibility

Published on May 02, 2024 12:43

The dollar index failed to sustain above 106 mark on Thursday after briefly oscillating above the level since early this week. DXY futures climbed above the psychological level ahead of FOMC but tumbled thereafter as Fed left interest rates steady and ruled out the possibility of another rate hike. However, the committee 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. Retracing yields also pulled the DXY futures lower, currently quoting at 105.54, down 0.10% on the day. Meanwhile, Japanese Yen rallied amid speculations of another intervention by authorities, in turn weighing down the USD index. Among basket currencies, EURUSD and GBPUSD are currently quoting at $1.0738 and $1.2527 respectively. Investors now look ahead to a key US monthly jobs report on Friday for further guidance on interest rates.

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