Currency Buzz: Dollar Index Holds Near 20-Year Peak Ahead Of US Inflation Data

11 May 2022 , 12:33 PM

The dollar index continued to hold near 20-year highs, but momentum eased slightly ahead of the crucial US consumer price data due later on Wednesday that should provide cues on Feds action going forward. DXY, that measures the greenback against a basket of currencies quoted at 103.74. Dollar holds under 104 mark as US treasury yields took a breather at around 2.95% after hitting a high of 3.20% on Monday for the first time since November 2018. The Fed raised its benchmark interest rate by 50 basis points last week, the largest in 22 years. Meanwhile risk-off sentiment in the past few days amid economic uncertainties surrounding Europe and China, with Russias war in Ukraine and Covid-induced lockdowns in China adding to global growth slowdown concerns saw investor flocking to the greenback for safety. Powered by Commodity Insights