Dollar Index Edges Higher
The dollar index climbed above 99 on Wednesday, its strongest level in about a week, extending gains for a fourth consecutive session.
The greenback benefited from a weaker pound after UK inflation came in below expectations, boosting bets on interest rate cuts by the Bank of England. Meanwhile, concerns over the ongoing government shutdown persist, with no resolution in sight. On Tuesday, President Trump rejected a request from top Democratic lawmakers to meet until the shutdown ends. The US CPI report is still expected on Friday.
On the monetary front, the Federal Reserve is widely anticipated to cut the federal funds rate by another 25 basis points next week, despite the lack of updated economic data. The greenback also strengthened against the euro but was little changed against the yen, the Swiss franc and the Canadian dollar.
Source: Tradingeconomics