DXY Futures Lose Ground Below 105 Mark; Powell Says Let Restrictive Policy Do Its Work

The dollar index futures lost ground and slumped below 105 mark as markets brushed aside elevated levels of producer price inflation for April. US producer Price Index (PPI) increased by 0.5% on monthly basis, surpassing the forecasted 0.3% rise. Similarly, the core PPI, which excludes food and energy prices, also rose by 0.5%, beating the expected 0.2% increase. Meanwhile, Federal Reserve Chair Jerome Powell said that the PPI readings were higher than expected. He added that policymakers need to be patient and let restrictive policy do its work. Investors now shift focus to US CPI report this week. The dollar index dumped aside higher PPI data and added to losses at 104.82 alongside fall in treasury yields. Among basket currencies, EURUSD and GBPUSD are quoting higher by 0.06% at $1.0842 and $1.2600 respectively.

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