US Dollar index lingers at lowest level in over a year

The US dollar is lingering at its lowest level in over a year amid rising prospects of a Federal rate cut this year although the timing and magnitude needs to be seen. The dollar index that measures the greenback against a basket of currencies is quoting at 100.6 in early Asia on Wednesday, its lowest level since July last year. The US 10-year benchmark rate trades at 3.83%. Investors now look ahead to the latest initial jobless claims and the Fed-preferred PCE price index report later this week for more clarity on the rate path. Meanwhile, on the economic front, the Conference Board released a report on Tuesday unexpectedly showing a modest improvement by U.S. consumer confidence in the month of August. The report said the Conference Board's consumer confidence index rose to 103.3 in August from an upwardly revised 101.9 in July. The Conference Board also said the present situation index improved to 134.4 in August from 133.1 in July, while the expectations index ticked up to 82.5 in August 81.1 in July. Against the basket currencies, EURUSD is quoting at $1.11, a year low and GBPUSD at $1.32, lowest in over two years.

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