USA: Dollar Index Eases from 15-Month High.

The US dollar index rose to 101.3 on Wednesday, easing from the 15-month high of 101.6 earlier in the session after Fed Chairman Warsh said that inflationary risks are lower. The remark was aligned with a reduction in the ISM Manufacturing prices gauge, aided by the pullback in energy prices, and taming the risk of multiple Fed rate hikes this year Still, a majority of the market continued to expect some level of tightening. Data aggregated by the ADP indicated that the US private sector added nearly 100,000 jobs in June, slightly under market expectations but firmly above the average this year to maintain leeway for the Fed to restrict monetary policy. The dollar was also supported by Warsh's campaign to reduce the central bank's balance sheet, limiting the supply of dollars and playing a part in the unwinding of the dollar debasement trade from earlier in the year. Lastly, bets of ECB hikes eased amid softer inflation in the bloc, while a fiscally-dovish Japan pressured the yen.