DXY Edges Up Slightly

2025-12-30 19:31 By Agna Gabriel 1 min. read

The US dollar edged up to around 98.2 on Tuesday but remained close to its weakest level since early October, as investors digested minutes from the Federal Reserve’s December meeting.

The minutes showed that most Fed officials are inclined to cut interest rates further next year if inflation continues to ease, reinforcing expectations of a looser monetary policy stance.

They also highlighted divisions within the Fed, underscoring how difficult the decision to cut rates by 25 basis points earlier this month had been.

Political uncertainty added to pressure on the dollar after President Donald Trump said he has a preferred candidate to succeed Fed Chair Jerome Powell, while also suggesting he might remove Powell.

Overall, the dollar is down about 9.6% this year, its steepest annual decline since 2017, driven by rate-cut expectations, shrinking yield advantages, trade policy uncertainty, fiscal concerns, and questions over the Fed’s independence.



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