The dollar index slips under 98 mark in Asian hours on Thursday awaiting further developments surrounding the next US Federal Reserve Chairman. US President Donald Trump announced on Tuesday that he will appoint the Fed’s Chair and Kugler’s replacement by the end of the week. Meanwhile, weaker-than-expected US data this week alongside nonfarm payrolls report for July pointed to a cooling labor market and boosted expectations that the US Federal Reserve (Fed) will slash rates. All eyes are now awaiting initial jobless claims for further signals.
Meanwhile, Federal Reserve Bank of San Francisco President Mary Daly said on Wednesday that the Fed still has some ground to cover on its fight with inflation pressures despite overall progress. Daly highlighted that the Fed may be forced to act soon without having the full picture. Moreover, Boston Fed President Susan Collins and Fed Board of Governors member Lisa Cook cautioned that persistent uncertainty remains a major obstacle to effective policy transmission and challenges the central bank’s ability to manage interest rates efficiently. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at one and half week low of 97.90, down 0.08% on the day.