Dollar Index Loses Momentum On Increasing Bets Of A Near-Term Federal Rate Cut

The US dollar index is seen moderating losses after falling sharply to a five week low in the previous session. The yield on the benchmark 10-year US government bond tumbled to its lowest level since March, dragging the US Dollar lower. DXY slumped after US data showed softer-than-expected US consumer inflation figures, which lifted bets for a September interest rate cut by the Federal Reserve. US Bureau of Labor Statistics (BLS) reported that the headline Consumer Price Index (CPI) dipped in June for the first time in more than four years and the yearly rate decelerated to 3% from 3.3% in May. Currently, the counter is quoting at 104.18 after shedding over half a percent yesterday. Meanwhile, US dollar slumped to its lowest level in over three months against the euro. EURUSD is currently trading at $1.09 while GBPUSD is seen at $1.29 as both counters gains overnight on dollar weakness.

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