U.S. Dollar Mixed Amid Cautious Mood

(RTTNews) - The U.S. dollar turned mixed against its major counterparts in the New York session on Thursday.

The currency rose against the euro and the pound, as the Federal Reserve's hawkish turn on rate cuts made investors cautious.

The Fed's latest projections showed officials expect only one interest rate cut this year compared to the three forecast in March.

The central bank acknowledged "modest further progress" towards its 2% inflation target and maintained interest rates.

Traders are still betting on two interest-rate cuts in 2024 despite the Fed's projection for one rate cut this year.

Data from the Labor Department showed a modest decrease in producer prices in the month of May.

The producer price index for final demand dipped by 0.2% in May after climbing by 0.5% in April. Economists had expected producer prices to inch up by 0.1%.

The report also said the annual rate of producer price growth slowed to 2.2% in May from an upwardly revised 2.3% in April. Economists had expected the annual rate of producer price growth to accelerate to 2.5% from the 2.2% originally reported for the previous month.

The greenback climbed to 1.0734 against the euro and 1.2738 against the pound, off its early lows of 1.0816 and 1.2807, respectively. The greenback is seen finding resistance around 1.05 against the euro and 1.24 against the pound.

The greenback edged up to 0.6625 against the aussie and 0.6160 against the kiwi, from its previous lows of 0.6675 and 0.6199, respectively. The greenback is likely to locate resistance around 0.64 against the aussie and 0.60 against the kiwi.

The greenback touched 1.3763 against the loonie, setting a 2-day high. On the upside, 1.39 is possibly seen as its next resistance level.

Meanwhile, the greenback eased against the yen and the franc and was trading at 156.74 and 0.8946, respectively. The currency may locate support around 149.00 against the yen and 0.88 against the franc.