DXY lingers around one-week low; Fed's Miran advocates for further interest rate cuts

The dollar index continues to linger around a one-week low on Tuesday amid dovish comments from Fed speakers and prolonged uncertainty surrounding end of US government shutdown. The Senate late on Sunday reached a compromise and moved forward on a measure aimed at ending the longest US government shutdown in American history that began on October 1. However, investors worry the outcome of delayed data and the impact of government closure on US economy. Further, Federal Reserve Governor Stephen Miran said better-than-expected inflation data and signs of continued weakness in the job market call for a third consecutive interest-rate cut in December. He advocated, as he has at the previous two Federal Open Market Committee meetings, for a 50 basis point, or half percentage point, reduction, though he said there at least should be a quarter-point easing, as per reports. Meanwhile, Federal Reserve Bank of St. Louis President Alberto Musalem said he expects the US economy to bounce back strongly early next year, underscoring the need for officials to approach additional interest-rate cuts with caution. The dollar index that measures the greenback against a basket of currencies is staying flat around 99.50.

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