Dollar Index stays listless below 107 mark; US PCE data on tap

The dollar index steadied just below 107 mark alongside US treasury yields around 4.28% even as Fed minutes hinted that the Federal Reserve could pause reducing rates and hold them at around restrictive levels if inflation remains elevated. The minutes said officials feel a gradual approach to lowering rates to a more neutral stance will be appropriate if economic data come in "about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment." However, the minutes noted officials judged that the risks to achieving the Fed's employment and inflation goals were roughly in balance. For the week ahead, the Feds preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index is due to provide further cues while holiday shortened weekend ahead of Thanksgiving is likely to keep bounded range in the greenback. US markets will be closed on November 28 due to the Thanksgiving Day holiday. Currently, the dollar index is quoting at 106.81, down 0.15% on the day. Among the basket currencies, EURUSD and GBPUSD are trading slightly higher at $1.0491 and $1.2573 respectively.

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