Dollar index at 3-week high

The dollar index is seen renewing gains near a three-week high and just a tad below reclaiming 104 mark on Tuesday. The index has been on a declining path to touch a five month low before this recovery tracking higher US treasury yields that are currently above 4.3%. Meanwhile, data from US showed S&P Global Composite PMI rose sharply, showing improved economic momentum in March, led by robust service sector growth. Manufacturing PMI disappointed, slipping into contraction territory below 50 and falling short of market expectations. Services PMI exceeded forecasts, offering optimism about consumer demand and economic resilience as it rose to 54. Atlanta Fed President Raphael Bostic emphasized ongoing uncertainty, stating that inflation progress may be slower than previously projected. The dollar index that measures the greenback against basket o currencies is quoting at 103.99, largely flat on the day. Among basket currencies, EURUSD and GBPUSD are seen at $1.0849 and $1.2916 respectively. Going ahead, investors will take cues from US President Donald Trump and other FOMC members who are slated to speak later in the global day.

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