The US Dollar experienced gains, pushing the dollar index to around 104, as global trade tensions heightened, primarily impacting the Euro and other major currencies. US inflation data came in weaker than expected, while jobless claims remained relatively stable. Investors are now focused on the upcoming Federal Reserve policy decision.
- The dollar index rose to around 104, marking its third consecutive session of gains.
- President Trump threatened to impose 200% tariffs on all alcoholic products from the European Union.
- He reaffirmed his stance on implementing reciprocal tariffs on global trading partners, set to take effect on April 2.
- US inflation figures for February came in below expectations.
- The latest weekly jobless claims stood at 220K, slightly below estimates.
- Investors are focusing on next week’s Federal Reserve policy decision.
- The central bank is widely expected to hold interest rates steady.
The dollar’s recent performance appears to be driven by both external and internal factors. Trade disputes are creating uncertainty that is benefiting the dollar. Domestically, while inflation remains a concern, other economic indicators suggest a degree of stability. The upcoming Federal Reserve decision will be crucial in determining the dollar’s trajectory, as any hints about future monetary policy will likely influence its value.