The currency markets remained broadly stable last week. The dollar sustained higher and the US Treasury yields oscillated up and down around 4.2 per cent all through last week. The euro remained lower and subdued. The Indian rupee attempted to recover but seems to lack strength.
The US Personal Consumption Expenditure (PCE), the Federal Reserve’s inflation gauge data was released on Friday. The US Core PCE came in at 2.78 per cent (year-on-year) for February. It continues to move down. The impact of this data release on the dollar will be seen next week as Friday the markets were closed.
Dollar outlook
On the charts, the near-term outlook remains positive for the dollar index (104.50). The index is getting support from around 104. This keeps the upside open for the dollar index to test 105 and 105.50 in the short term. The chances of the upside extending even up to 106-106.50…
