The US Dollar index stabilized around 97.4 on Friday after a two-day rise, influenced by the Federal Reserve’s less dovish approach than anticipated. Data indicating a drop in new jobless claims also contributed to the dollar’s support, offsetting earlier losses from the week. Other central bank decisions, such as the Bank of Canada cutting rates and the Bank of England holding steady, added to the complex global monetary landscape.
- The dollar index steadied around 97.4 after rising for two straight sessions.
- The Federal Reserve signaled a less dovish policy stance than markets had anticipated.
- The Fed delivered a quarter-point cut and projected two more reductions this year, while indicating just one cut in 2026.
- Fed Chair Jerome Powell framed the move as a risk management step amid a slowing labor market, stressing there was no need to rush easing.
- Data showed new jobless claims fell last week, reversing the prior week’s spike.
- The Bank of Canada cut rates while the Bank of England left policy unchanged.
- The dollar index is on track to finish the week little changed, erasing most of the losses from earlier in the period.
The overall sentiment suggests a period of stability for the US Dollar, heavily influenced by the Federal Reserve’s monetary policy decisions and positive economic indicators. The dollar’s resilience is bolstered by a cautious approach to easing and encouraging signs in the labor market, despite global monetary policy variations. This environment points to a potentially balanced outlook for the currency in the near term.