US Dollar Holds Strong, Markets Await Inflation Data
The US dollar continues to show strength despite global market uncertainty. This safe-haven asset is supported by expectations that the Federal Reserve (Fed) will keep interest rates steady at its upcoming meeting. Investors are also wary of political pressure on the Fed, including the threat of impeachment against Chairman Jerome Powell, which has raised concerns about the central bank's independence.
Market sentiment towards the US dollar is also influenced by employment and inflation data. December's Nonfarm Payrolls (NFP) data, which missed expectations, reinforced the prospect of a more dovish Fed, while the release of the Consumer Price Index (CPI) will be a key indicator of future policy direction. Market participants believe that high inflation figures could deter the Fed from cutting interest rates too quickly.
Despite pressure from geopolitical tensions and the weakening of other currencies, such as the Japanese yen, the US dollar remains in demand as a global reserve currency. This strength is likely to persist until there is more certainty from the latest economic data and the Fed's policy actions, making the USD a primary choice for international investors. (az)
Source: Newsmaker.id
