Dollar index loses momentum from multi-month highs

The US dollar index is seen extending recent streak of weakness following a roller coaster rally to a one-year high earlier this month. Trump victory in the US Presidential elections and reduced expectations of the extent of Federal Reserve rate cuts has buoyed the greenback by over 2% for the month thus far. The US 10-year benchmark rate trades at 4.41%, just off Fridays high of 4.50%. The dollar index that measures the greenback against a basket of currencies is quoting at 106.20 after having hit a high of 106.99 at one point in November. Among basket currencies, EURUSD and GBPUSD are both staying close to the flat line at $1.0599 and $1.2670 respectively. Meanwhile, the yen got some much-needed respite on Tuesday owing to a pullback in the U.S. currency, which ran into profit-taking after a remarkable rally that saw it scale a one-year high.

 

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