Dollar Index Down, Could Remain Volatile Until Trade Policy Clarity Emerges
The dollar traded against a basket of currencies as U.S. President Donald Trump’s inaugural address did not foresee immediate trade tariffs.
However, “the U.S. dollar exchange rate could see some movement before trade policy is confirmed by the U.S. administration,” Schroders said in a note.
By the end of 2024, several factors are converging to make the dollar stronger. “These factors include expectations of higher interest rates in the U.S. relative to other major central banks, as well as higher U.S. growth relative to other regions,” the asset manager said. The DXY U.S. dollar index fell 0.8% to 108.545.
Source: Bloomberg
