US Dollar Index steadies near 99.50 ahead of FOMC Minutes

US Dollar Index Holds Steady Around 99.50 Ahead of FOMC Meeting Minutes

The US Dollar Index (DXY), which measures the performance of the US Dollar against six major currencies, remains steady after gaining more than 0.5% in the previous session. During the European session on Wednesday, the DXY is hovering near 99.60 as investors await the release of the Federal Open Market Committee (FOMC) meeting minutes later in the North American session.

Rising US Consumer Confidence Boosts the Dollar

The dollar is supported by a significant improvement in US consumer sentiment, with the Consumer Confidence Index rising to 98.0 in May from 86.0 previously. This indicates growing optimism among consumers and reduced fears of an economic slowdown.

Impact of Japan’s Debt Issuance Plans on Global Markets

Further support for the dollar comes from falling US Treasury yields, pressured by global bond markets following Japan’s government announcement of potential cuts in debt issuance. Japan’s Ministry of Finance recently invited market participants to provide feedback on bond issuance after long-term yields in Japan reached record highs last week.