Dollar index attempts recovery from 5-month low ahead of Fed decision

The dollar index is witnessing mild uptick on Tuesday morning in Asia ahead of the much awaited Federal Reserve policy meeting outcome this week. The yield on the 10-year US Treasury note remained stable around 4.29%. DXY that measures the greenback against a basket of currencies is quoting at 103.20, up 0.20% on the day, still struggling around 5-month lows. Concerns over US trade policies, with President Donald Trumps aggressive tariff stance raising fears of potential economic slowdown is keeping the greenback under pressure. Meanwhile, data yesterday showed that US retail sales came in slightly less than expected at 0.2% in February after tumbling by a revised 1.2 percent in January. However, President Donald Trump set to engage in discussions over Ukraine with Russian President Vladimir Putin will also be watched for direction. Among basket currencies, EURUSD and GBPUSD are both down around 0.2% today in line with uptick in dollar and are trading at $1.0962 and $1.2970 respectively. Meanwhile, both the Bank of Japan and the Bank of England are set to announce their monetary policy decisions later this week.

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