Dollar Index Sluggish Around 106 Mark; Further Cues Awaited

The dollar index has halted bullish momentum and continues to stay sluggish around 106 mark since mid-April even as benchmark US treasury yields are staying elevated at 4.6% amid hawkish tone by Fed officials as inflation in US remains stubborn. Upcoming US economic data for the week is keenly awaited for further cues on Federal course of action. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 106.03, marginally higher on the day. Persistently higher yields and hawkish Fed officials comments could likely drive the greenback higher. Moreover, any further escalation on the geopolitical from in Middle East could also support gains in safe haven currency. Among the basket currencies, EURUSD and GBPUSD are both trading at their lowest level in over five months at $1.0669 and $1.2342 respectively.

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