The dollar index firmed up further near a 3 and half week high on Thursday following sharp moves in the previous session amid reports of President Donald Trump considered removing Fed Chair Jerome Powell. Meanwhile, US data showed PPI in June dipped from 2.6% to 2.3% on year, below estimates of 2.5%. Excluding volatile items, PPI cooled from 3% to 2.6%, below forecasts of 2.7%. A day earlier US CPI rose 2.7% year-over-year in June, support the case of the Federal Reserve (Fed) maintaining its benchmark overnight interest rate unchanged. Further, Dallas Fed President Lorie Logan said on Tuesday that the Fed will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs. US treasury yields climbed to 4.48% while the dollar index that measures the greenback against a basket of currencies added around 0.3% to 98.37 at the time of writing. The greenback stays firm ahead of retail inflation data, the weekly unemployment claims and also in focus are Fed speakers for further cues. Among basket currencies, EURUSD and GBPUSD have both lost recent momentum as dollar regains strength and are quoting lower at $1.1634 and $1.3391 respectively.
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