Dollar Index pulls back as Powell in no hurry to lower rates; US inflation in focus

The US dollar index pulled back slightly below 108 mark on Wednesday morning, extending downside from previous session after Federal Reserve Chair Jerome Powell, in remarks before Congress said that the central bank does "not need to be in a hurry" to adjust its policy stance. Powell noted interest rates have been lowered by a full percentage point since last September, describing the Fed's current policy stance as "significantly less restrictive than it had been." The Fed chief reiterated that the central bank will assess incoming data, the evolving outlook, and the balance of risks in considering the extent and timing of additional adjustments to interest rates. However, the yield on the 10-year US Treasury note rebounded above 4.55% today, marking its fifth consecutive gain as investors awaited a crucial inflation report that could offer further insight into the direction of interest rates. US inflation figures on the consumer and producer sides will be watched this week. Currency, the DXY that measures the greenback against a basket of currencies is trading at 107.94, up 0.10% on the day.

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