DXY Holds, Safe Havens and Fed's Stance Support USD
The US dollar moved steadily on Friday (February 27th), holding within a narrow range of around 97.7–97.9 on the Dollar Index (DXY). This relatively subdued movement reflects the market holding large positions while awaiting the next headlines, particularly regarding geopolitical risks and trade policy.
Despite the relatively quiet daily reading, the dollar is on track to post its first monthly gain since October, supported by a combination of safe haven demand and expectations that the Fed will remain cautious before continuing policy easing. Reuters noted that the DXY rose around 0.6% throughout February, as investors assessed that global uncertainty remained high.
In global markets, interest rate dynamics and regional risks also shaped the dollar's direction. Reuters highlighted that geopolitical tensions including developments in the Pakistan–Afghanistan conflict and US–Iran negotiations—drove defensive flows to the dollar, while diverging interest rate expectations kept major currencies' movements selective.
Going forward, the USD has the potential to remain range-bound until a stronger new trigger emerges, either from US economic data or tariff and geopolitical developments. As long as the risk narrative remains dominant and the Fed hasn't given a clear signal regarding the timing of the next rate cut, the dollar is likely to remain strong but will struggle to rally aggressively without additional catalysts.(Cp)
Sumber: Newsmaker.id
