The dollar index came under pressure on Friday morning in Asia but continued to hold firmly above 104 mark, limiting upside for peer currencies. The greenback receded from previous day gains after Fed officials reiterated that there is no urgency to cut rates and will wait for the additional evidence of inflation data before considering lowering the interest rate. This is keeping the dollar index hanging above 104 mark. Data from US Personal Consumption Expenditures (PCE) yesterday showed that annual inflation in January was the lowest in three years, increasing possibility of an interest rate cut by the Federal Reserve. The dollar index that measures the greenback against a basket of currencies was trading at 104.05, down marginally on the day. Among basket currencies, EURUSD and GBPUSD are trading slightly higher at $1.0821 and $1.2630 respectively.
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