Adding further pressure, the index rose for a third consecutive session. It stood at 98.373, up from the previous close of 98.265, as investors sought safety in the greenback. A stronger dollar typically weighs on emerging market currencies, including the rupee, by prompting capital outflows and raising import costs.
The Dollar Index remains a key indicator for gauging broader currency trends. “The dollar index gained for the third straight day as traders awaited clarity from the Fed chief’s address at the Jackson Hole symposium this weekend,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
