Dollar index hits 2-month top above 99 mark

The dollar index is hovering at a two month high after the Federal Reserve (Fed) decided to hold its benchmark federal funds rate in a range of 4.25%-4.5% at its July meeting on Wednesday. Fed Chair Jerome Powell said in a post-policy conference that the US central bank has "made no decisions" about a potential policy change in September, and it may take a bit to assess the effect of tariffs on consumer prices. Meanwhile, the greenback also drew support from stronger-than-expected US economic data that expanded at an annual rate of 3.0% for the April through June period. This was followed the 0.5% contraction in the first quarter and came in stronger than the expectation of 2.4%. Investors now await the US Personal Consumption Expenditures (PCE) Price Index and Nonfarm Payrolls (NFP) this week for further cues. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 99.55, down marginally on the day.

 

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