Currency Buzz: Dollar Index Pulls Back Ahead Of Fed Minutes

22 Nov 2022 , 11:33 AM

The US dollar pulled back on Tuesday following a sharp surge in the previous session amid weakening risk appetite. Investors flocked to the safe haven dollar as Chinas capital warned on Monday that it was facing its most severe test of the COVID-19 pandemic, with a surge in COVID cases sparking fresh restriction measures. Deaths from the virus were also recorded in Beijing for the first time since late May. The dollar index that measures the greenback against a basket of currencies was down 0.13% at 107.60 tracking US benchmark treasury yields that gave up overnight gains and dipped to 3.8% today as the latest comments from the Federal Reserve (Fed) officials failed to bolster the previously hawkish bias. Cleveland Fed President Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month. Investors cautiously awaited the latest Federal Reserve meeting minutes that could guide the outlook for US rates. Powered by Commodity Insights