Dollar Index regains momentum; US CPI eyed for further cues

The US dollar recovered abroad after American labor market data helped ease concerns about the strength of the labor market. First-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended August 3rd. The report said initial jobless claims fell to 233,000, a decrease of 17,000 from the previous week's revised level of to 250,000. The bigger than expected decline came a week after jobless claims reached their highest level since hitting 258,000 in the week ended August 5, 2023. The dollar index gained impetus following the data that helped ease fears of a possible recessionary situation in the US. DXY that measures the dollar against a basket of currencies is quoting around the 103 mark. With lack of any major data on the economic front, the American currency is expected to stay around the levels for now. Next week, a batch of data including US inflation data and FOMC speakers comments are likely to guide further direction for dollar. Among the basket currencies, EURUSD and GBPUSD are quoting at $1.0942 and $1.2767 respectively.

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