Currency Buzz: Dollar index rallies to two-month high as Fed speakers offer contrasting comments

US dollar index has extended its winning run for third session as markets assessed comments from various US Fed policymakers. Kansas City Federal Reserve Bank President Jeff Schmid has stated that US inflation remains above the Fed?s goal. Schmid said that he voted in favour of the Fed?s September quarter-point rate cut but sees no need for aggressive easing. Constraints lead to difficult decisions over how to balance competing objectives, and the Fed has been tasked with these difficult decisions when it comes to inflation and employment he said. However, Minneapolis Fed President Neel Kashkari stated that some of the data we're looking at is sending some stagflationary signals and that any drastic cuts to interest rates would risk stoking inflation. Now market is waiting for a speech from Fed Chair Jerome Powell and the US dollar index is holding well above 98 mark. The index is currently trading at 98.60, up 0.30% on the day and is near two-month high.

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