Dollar index accrues mild gains ahead of Fed decision

The dollar index is attempting to stay firm above 103 mark ahead of Federal Reserve policy decision scheduled later in the global day. The greenback has been under pressure lately following US President Donald Trumps trade policies that are building economic concerns that could potentially lead America into recession. DXY, which measures the greenback against basket of currencies, is lingering around a five month low of 103.05 after having slipped below 103 mark in the previous session. Data from US showed industrial production increased by much more than expected in the month of January. The report said industrial production climbed by 0.7 percent in February after climbing by a downwardly revised 0.3 percent in January. Meanwhile, housing Starts surged, reflecting ongoing strength in the housing market despite broader economic uncertainties. The greenback has also been facing pressure from a strengthening euro after Germanys parliament agreed on a major debt reform to boost spending on defense and infrastructure. Among basket currencies, EURUSD and GBPUSD are trading lower by around 0.2% in tune with dollar gains today and are quoting at $1.0979 and $1.2979 respectively.

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