Dollar index pulls back under 97 mark; Fed Powell's speech eyed

The dollar index pulled back under 97 mark and is trading almost flat on Tuesday morning in Asia after mixed views from Fed speakers late yesterday. Fed Stephen Miran has doubled down on his calls for the central bank to more aggressively cut interest rates. He reportedly said that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts. Meanwhile, St. Louis Federal Reserve President Alberto Musalem on Monday reiterated his support for last weeks interest rate cut, but said he is wary about going much further. He supported the rate cut at last week's Fed meeting as a precautionary move to protect the job market but said there may be "limited room" for further reductions as inflation remains above the target. Going ahead all eyes are on Fed Powell speech and US PMI data tomorrow for further cues. Currently, the dollar index that measures the greenback against basket of currencies is quoting at 96.97, down marginally on the day. Among basket currencies, GBPUSD and EURUSD are also trading along the flat line.

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