Dollar index loiters around 7-week low after Fed rate cut

The dollar index extended slide in early Asia on Thursday following a sharp dip by nearly 1% in the previous session after US Federal Reserve delivered its much awaited rate cut at its December policy meeting, the third consecutive reduction since September. Federal Reserve cut lowered the federal funds rate by 1/4 percentage point to 3-1/2 to 3 3/4 percent. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook, Fed said, further noting that the Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. In their latest economic projections, Fed officials penciled in just one rate reduction next year, unchanged from their estimate in September. Looking forward for the day will be US weekly claims. The dollar index that measures the greenback against a basket of currencies is quoting at 98.35, down 0.1% on the day and loitering at its lowest level in around 7 weeks.

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