The US dollar strengthened in thin holiday-affected trading on Tuesday, maintaining recent strength as traders brace for fewer Federal Reserve interest rate cuts in 2025.
At 4:25 AM ET (09:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 0.1% higher at 107.905, near a recent two-year high.
The dollar has been in demand since the Federal Reserve outlined a hawkish outlook for interest rates after its final policy meeting of the year last week, projecting just two rate cuts of 25 basis points in 2025.
In fact, markets are now pricing in just about 35 basis points of easing for 2025, which in turn has sent U.S. Treasury yields soaring, boosting the dollar.
The two-year Treasury yield was last at 4.34%, while the benchmark 10-year yield was steady near a seven-month high of 4.59%.
"We think this aggressive readjustment of Fed communication will set the stage for continued dollar strength in the new year," analysts at ING said in a note.
Trading volumes are likely to thin as the year-end approaches, with this trading week shortened by the festive period.
Source: Investing.com
The USD/CHF pair weakened for the third consecutive day and traded around 0.7960 in early European trading on Tuesday. The Swiss franc strengthened on increased demand for safe haven assets, following...
The US Dollar Index (DXY) trended sluggishly around 99.06 on Monday (January 19th), as liquidity thinned as US markets were closed for Martin Luther King Jr. Day. Despite limited movement, global sent...
The US dollar is expected to rise for a third straight day on Thursday (January 8), but trading remains cautious as investors position themselves ahead of Friday's Nonfarm Payrolls (NFP) report. Recen...
The dollar index edged up to 98.5 on Tuesday, its strongest level in more than two weeks, as investors focused on a slate of key economic data for the US. Recent indicators have pointed to some soften...
The US dollar opened 2026 weakly on Friday. Throughout last year, the dollar was pressured by many major currencies due to narrowing interest rate differentials between the US and other countries. Con...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...