Dollar index moves up to over a one-week high; Fed policymakers deeply divided on rate decision

The dollar index is consolidating gains on Thursday morning in Asia following an over half a percent gain in the previous session that took the counter to its highest level in one and half weeks. The DXY that measures the greenback against a basket of currencies is currently quoting at 97.69, nearly unchanged for the day. Minutes from the January FOMC meeting revealed on Wednesday that policymakers were deeply divided over the necessity and timing of further rate cuts amid concerns about inflation. Meanwhile, safe haven demand amid signs of rising tensions between the US and Iran is also supporting the greenback. US Vice President JD Vance reportedly said on Wednesday that Iran had failed to acknowledge key US demands in talks, after which Washington said it had agreed to give Tehran two weeks to close the gaps between the sides. Investors now turn to the upcoming jobless claims., PCE inflation and GDP reports for further guidance on the rates outlook.

 

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