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Dollar index holds near 8-week high as US growth outlook brightens
The DXY is around 101.23 after a rebound tied to higher oil prices and a stronger-than-expected US flash S&P Global PMI for September.
The US Dollar Index, which tracks the greenback against six major currencies, remained on the front foot in Asian trade, holding slightly above 101 and near a fresh eight-week high of 101.23, according to FXStreet.
FXStreet attributed the move to a sharp recovery in oil prices and the release of a stronger-than-expected United States flash S&P Global Purchasing Managers Index for September. The outlet said the private sector PMI indicated business activity stayed robust, with growth across both manufacturing and services.
FXStreet noted that the oil-price rebound has revived concerns about persistent inflation risks, reinforcing the Federal Reserve narrative of higher-for-longer rates. The piece also cited Fed policymakers’ remarks that higher energy prices and strong demand are fueling inflationary pressures.
Technical analysis cited by FXStreet showed the Dollar Index spot trading around 101.10, above the 20-period exponential moving average near 99.98, which it said is acting as trend support. The Relative Strength Index (14) was described as elevated at 71.0, suggesting the move is becoming stretched.
Latest closeDollar index 101.16 ▲0.7%