Dollar Holds Near 3-Year Low

2025-09-23 17:19 By Andre Joaquim 1 min. read

The dollar index held at the 97.3 mark on Tuesday, lingering relatively close to the three-year low of 96.2 touched last week as markets continued to assess the outlook of rates on major monetary authorities and risks to the US economy amid changes to economic policy.

Fed Chairman Jerome Powell reiterated that evidence of a weaker labor market drove the FOMC to shift its balance of risks in a way that warranted a rate cut, citing an increase in the unemployment rate and slowdown in job growth.

The Chariman also noted that the impact of tariffs on inflation have so far been on the lower range of expectations, adding room for less restrictive policy by the Fed.

Conversely, expectations that the ECB is done with its cutting cycle lifted the euro, the DXY's largest counterpart, to its highest in four years against the greenback.

Traders also watched for the possibility of another BoJ hike.

Conversely, the Riksbank cut its policy rate.



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