Fed rate cut expectations keep dollar index under pressure

The dollar index is seen extending decline near a two and half week low on Thursday morning in Asia amid increasing prospects of a Federal rate cut amid soft US inflation data. Further cues will be taken from the US Producer Price Index (PPI) and the weekly Initial Jobless reports, which will be released later in the global day. Moreover, the greenback was also weighed down by ongoing tariff tensions and rising fiscal worries. A Treasury report released Tuesday confirmed that US national debt has exceeded $37 trillion for the first time, while the Congressional Budget Office estimates that recently enacted legislation signed by President Trump could add about $4.1 trillion to the debt over the next decade. The dollar index that measures the greenback against a basket of currencies is seen consolidating around 97.60 mark.

 

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