The US dollar moved steadily, tending to strengthen slightly on Wednesday, October 29, 2025, after briefly touching its weakest level in about a week. The dollar index (DXY), which measures the greenback's strength against six major currencies, was in the 98-99 range, up around 0.2%. This slight gain occurred ahead of the Fed's policy decision, which will almost certainly cut the benchmark interest rate by another 25 basis points.

The market has essentially priced in the Fed's rate cut today and possibly another at its December meeting. This means that investors are now focusing more on the Fed's tone than on the rate decision itself.

If Powell sounds overly dovish and signals further cuts as the economy begins to slow, the dollar is likely to weaken further, as yields on dollar-based assets become less attractive. However, if Powell is firm and cautious, the dollar could rebound. In other words, the dollar's value tonight will be determined more by Powell's words than the rate decision itself. 

Source: Newsmaker.id