The dollar index is seen rebounding back above 97 mark after Fed's Powell struck a more balanced tone, describing the Federal Reserve's (Fed) position as a 'challenging situation'. Powell said on Tuesday that the central bank faces a challenging situation with ongoing risks of faster-than-expected inflation, while weak job growth raises concerns about labor market health. He also offered little guidance on the timing of the next move after a 25 bps cut in his September policy. Focus will now be shifted towards the August personal consumption expenditures (PCE) Price Index data for further cues. The dollar index that measures the greenback against a basket of currencies is quoting around 97 mark. Among basket currencies, EUR/USD and GBP/USD are both trading slightly lower at $1.1856 and $1.3510 respectively.
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