US Dollar Index Pauses Rally; Cautiously Awaits US Inflation Data For Further Cues

Published on Sep 11, 2023 11:12

The dollar index briefly paused its rally in early Asia on Monday and pulled back from recent highs around 105 mark. Investors are cautiously awaited key US inflation reading due this week that could influence the interest rate outlook. Last week, data showed that new unemployment claims in the US fell to their lowest in over six months in the final week of August, supporting the greenback. US Initial Jobless Claims data for the week ending September 2 showed a figure of 216K, better than the market expectations of 234K and coming in lower than the revised figure of 229K from the previous week. Rising 10-year US Treasury bonds yields to around 4.29% is also supporting the greenback stay close to recent highs. The dollar index that measures the greenback against a basket of currencies is down more than half a percent today, currently trading at 104.52. Among the basket currencies, EURUSD is quoting at $1.0742, up 0.4%. GBPUSD is recovering well from a three month low, trading at $1.2527, up 0.6%.