💵 US Dollar Cools Near 13-Month High Ahead of Key US Inflation Data

The US Dollar Index (DXY) hovered near 100.70 after tapping a 13-month peak of 101.13, following the Federal Reserve’s decision under new Chair Kevin Warsh to hold interest rates at 3.50%–3.75%. Global markets now await US PCE inflation data, which could reshape central bank outlooks and impact key import/export dynamics relevant to Sri Lanka. • Major Currency Shifts: • EUR/USD slid over 0.80% to 1.1480 on a dominant Greenback and brewing Eurozone manufacturing anxieties. • GBP/USD slumped to 1.3230 after the Bank of England held rates at 3.75%, though two policymakers voted for a hike. • USD/JPY remains volatile near intervention thresholds at 161.30, balanced between Fed caution and the Bank of Japan's rate hike to 1.00%. • AUD/USD dropped toward 0.7020 ahead of Australia’s domestic CPI and labor data. • Global Commodities & Energy: • Gold (XAU/USD) faced headwinds, struggling near $4,155/oz, though cushioned by ongoing Middle East geopolitical uncertainty. • WTI Crude Oil fell for a second week to $76.50/bbl, pressured by a US-Iran peace deal. Lower global energy prices offer a potential cushion against imported inflation for oil-dependent emerging economies like Sri Lanka.