The dollar index held above 105 on Thursday, remaining up so far this week and benefiting from risk-off sentiment as renewed recession fears gripped financial markets. The greenback was also being supported by bets that the Federal Reserve will raise interest rates further and keep them higher for longer following the release of surprisingly strong US employment, services and factory data. Investors now look ahead to US consumer inflation data next week, as well as the Fed’s policy meeting where it is expected to deliver a more moderate 50 basis point rate hike after raising its key rate by 75 basis points in the past four meetings. The dollar held its ground against the euro, sterling and the yen, while it gained against most emerging currencies.
