Dollar index recovers from two and half month low

The US dollar index is staying largely muted on Tuesday following a sharp recovery in the previous session. Currently, the DXY that measures the greenback against a basket of currencies is quoting at 106.57, up 0.08% on the day, and recovering from a two and half month low. Besides, gains in the index were also supported by easing euro and pound overseas. The British pound traded around $1.263, slightly below a 10-week high of $1.2669 hit on February 20th, as expectations for Bank of England (BoE) rate cuts increased. Meanwhile, euro traded little changed around $1.046, erasing most of its post-election gains after Germany's conservative CDU/CSU bloc secured victory but now faces the challenge of forming a coalition government. On the geo-political front, the US on Monday reportedly sided with Russia on a UN General Assembly draft resolution that called for a de-escalation, an early cessation of hostilities and a peaceful resolution of the war in Ukraine. Washington, which has in the past voted for resolutions that favoured Kyiv and condemned Moscow, shifted its stance amid a deepening war of words between US President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky.

 

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