Dollar index tests three-year low; US data eyed

The dollar index is seen easing to near 97 mark on Thursday, its lowest level in more than three years amid easing geopolitical tensions and expectations of Federal Reserve rate cuts. US President Trump mediated ceasefire between Israel and Iran reduced safe haven appeal for the currency. However, Fed Powell said during his testimony before US Congress that tariffs could cause just a one-time jump in prices, but added that the risks of becoming persistent are enough for the central bank to keep interest rates unchanged. Meanwhile, US data showed new home sales dipped 13.7% in May, from 722,000 in April to 623,000. US 10-year Treasury note is seen marginally lower at 4.27%. The US Dollar Index (DXY), which tracks the performance of the greenback against a basket of six peers, is also down 0.15% at 97.13. Traders await the US economic data due later on Thursday for fresh impetus. Due for the day is final US Q1 GDP, durable goods orders, pending home sales and the weekly initial jobless claims.

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