The dollar index continues to add strength near a three month high on Monday morning in Asia amid hawkish stance by the Federal Reserve last week. The US central bank decided to cut the interest rates by 25 basis points (bps) at its October meeting last week, as expected. However, Fed Chair Jerome Powell hinted that it may be the central bank's last reduction for the year, citing the risk of making additional moves without a more robust picture of the economy. Hawkish remarks from Fed officials also boosted the US Dollar across the board. Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack stated on Friday that they would have kept interest rates on hold instead of cutting the federal funds target range by a quarter point to 3.75-4.0%. Meanwhile, Kansas City Fed President Jeff Schmid noted that he favored no rate cut at the last meeting, as he's more concerned that inflation is 'too high' than he is about the labor market. The dollar index that measures the greenback against a a basket of currencies is currently quoting at 99.58, down marginally on the day.

Powered by Capital Market - Live News