Dollar index holds losses as safe haven demand dampens

The dollar index continued to stay under 98 mark on Wednesday on reduced safe haven demand amid seemingly easing tensions in the Middle East as the Israeli-Iranian truce has held since yesterday morning. Meanwhile, Feds Powell reiterated the message that Fed need not rush to cut, he did suggest that the Fed may cut rates sooner rather than later if inflation pressures remain contained in his semiannual monetary policy report to the Congress. Yesterday, Governor Bowman expressed support for a potential rate cut if inflation remains subdued, while Goolsbee suggested that Fed should cut rates if tariff dirt clears. Dovish comments from Fed officials are also keeping the dollar index unsupported although the index is seen paring some of its previous day sharp decline. The dollar index that measures the greenback against a basket of currencies is quoting at 97.69, up 0.25% on the day following a 0.57% decline yesterday.

 

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