The Dollar Retreats as Investors Eye Inflation Data. Last week, the dollar surged against most of its global peers. It rose to $90.57, which is its highest level since January 23rd.
Yesterday, the dollar index fell a few basis points to end the day at $89.97. This fall came as the volatility in the market slowed down as global stocks showed signs of recovery. Yesterday, the main global indices ended the day higher with the Dow closing above 400 points.
The rally also paused as investors waited for the inflation data, which will be released yesterday. Potentially, this is the data which could have significant impacts on the global financial markets. A surge in inflation will lead to chatter of higher rate hikes.
At the same time, investors are waiting for the hearing of Jerome Powell, the new Fed chair. He will address committees on 28th this month. Investors will want to hear his opinions about the market and how he plans to move forward.
There is a likelihood that the dollar index could fall to the support level of $89.90.