Dollar Index Descends On Dovish Fed Remarks; Gives Up 103 Mark

The dollar index slipped below 103 mark after Fed retained dovish stance for the year even as US inflation came in slightly sticky. The Federal Reserve announced its widely expected decision to leave interest rates unchanged on Wednesday, although the central bank's forecasts suggests rate cuts are still likely later this year. The Fed policy committee will however carefully assess incoming data, the evolving outlook, and the balance of risks in considering any adjustments to the target range for the federal funds rate. The Committee reiterated that it 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. The dollar index that measures the greenback against a basket of currencies was trading lower by 0.14% at 102.91 tracking lower US benchmark treasury yields at 4.2%. Among the basket currencies, EURUSD and GBPUSD recovered back above the psychological $1.09 and $1.28 mark in early Asia today before paring some of its sharp gains.

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