Dollar index stays downbeat; Fed's Beige Book points to cooling labor market, softer spending

The dollar index continues to hit lower levels amid growing expectations of a Federal rate cut even as trading volumes are expected to stay light through Friday due to the Thanksgiving holiday. Mixed set of US economic indicators released this week did little to alter market expectations that the US Federal Reserve (Fed) will cut interest rates again at its December policy meeting. New orders for manufactured Durable Goods Orders rose 0.5% in September, down from the upwardly revised 3.0% increase in the previous month. The latest figures published by the US Department of Labor showed that the number of Americans filing new applications for unemployment benefits fell to 216K, or a seven-month low, in the week ending November 22. Recent comments from top Fed officials are also strongly in favor of another quarter-point reduction at the December 9-10 FOMC meeting. Meanwhile, the Federal Reserve (Fed) Beige Book highlighted on Wednesday that wages are growing slowly, which has led to further declines in consumer spending, except among higher-end shoppers. The dollar index that measures the greenback against a basket of currencies is quoting at 99.43, down 0.10% on the day.

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