Dollar Index stays elevated above 109 mark; FOMC minutes suggest a "careful approach" to future decisions

The dollar index stayed elevated above 109 mark on Thursday morning in Asia, holding on to recent gains tracking higher treasury yields. US 10-year treasury yields hover around 4.7% amid hawkish shift by the Federal Reserve. The Federal Open Market Committee (FOMC) minutes from the December's meeting revealed that most participants supported a 25 basis point cut but remain cautious, factoring in potential trade and immigration policy changes that could prolong elevated inflation. Meanwhile, weekly initial jobless claims fell to 201,000, beating the 218,000 consensus. Private sector employment rose by 122,000 in December, though below market expectations. The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, is quoting at 109.00, up 0.07% on the day, mainly due to strong labor market figures. Investors are now eyeing Friday's release of the US Nonfarm Payroll report and the University of Michigan (UoM) consumer sentiment.

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