Dollar index largely steady despite Fed's cautious outlook

The dollar index stayed range bound under 100 mark even as the Federal Reserve kept interest rates unchanged and provided hawkish future stance citing continued uncertainty going ahead. The Fed held its key interest rate unchanged in a range between 4.25%-4.5% at the end of a two-day monetary policy meeting on Wednesday and stated that the uncertainty about the economic outlook has increased further. Fed Chair Jerome Powell noted that there is a great deal of uncertainty about tariffs and said that the right thing to do is wait for further clarity. This suggests that the US central bank is not leaning toward cutting rates anytime soon. This however failed to boost the dollar index. However, renewed uncertainty on trade tariff kept the greenback supported as US President Donald Trump reduced hopes for a quick resolution to the US-China trade war by saying that he is in no real hurry to sign any deals. The dollar index that measures the greenback against a basket of currencies is currently seen quoting at 99.77, up 0.27% on the day but largely steady since the last few days. Among the basket currencies, EURUSD and GBPUSD are quoting slightly lower at $1.1332 and $1.3324 respectively.

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