Mumbai, April 26 -- The dollar index stabilized around 105.6 on Friday, with investors adopting a cautious stance ahead of a crucial US inflation report for March. This release is expected to offer insights into the Federal Reserve's future monetary policy direction.

On Thursday, the index dipped to nearly two-week lows following data indicating that the US economy expanded by an annualized 1.6% in the first quarter of 2024, marking its slowest growth in approximately two years. Despite this, underlying inflation showed signs of picking up during the same period. Additionally, the latest jobless claims data continued to signal a tight labor market, adding complexity to the outlook for potential Fed rate adjustments this year.

The dollar...