DXY loiters under 100 mark as US data strengthens case for a Fed rate cut

The dollar index that measures the greenback against a basket of currencies is loitering under 100 mark on Wednesday morning in Asia on increased hopes of a Federal rate cut after US macro data released on Tuesday pointed to signs of cooling inflation. The latest figures from the Bureau of Labor Statistics showed on Tuesday that the US Producer Prices Index rose 2.7% in September from a year earlier, slightly above the 2.6% previous and broadly in line with expectations. Without food and energy, the core gauge was up 2.9% over the year compared to the 2.7% forecast and the 2.8% increase recorded in August. Meanwhile, retail sales rose 0.2% on a monthly basis in September below estimates for a 0.4% growth and following a 0.6% increase in August. Moreover, several Fed officials backed the case for a third rate cut this year in December, dragging the greenback lower.

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