Dollar Down to Over 4-Month Lows

2026-01-26 14:07 By Joana Taborda 1 min. read

The dollar index weakened for a third consecutive session on Monday, slipping to around 97, the lowest level in more than four months, and extending last week’s 1.9% decline, the largest weekly drop since April.

The so-called “sell America” trade persisted and speculation grew that the US and Japanese authorities could coordinate foreign-exchange intervention to support the yen, weighing on the greenback.

Also, worries mount of another government shutdown after Democratic leaders threatened to block approval of a $1.2 trillion funding package if it includes additional allocations for Homeland Security, following another shooting involving a US citizen in Minnesota.

Investors are also awaiting the Fed’s first monetary policy decision of the year on Wednesday.

While a hold is widely expected, traders will focus closely on the Fed’s economic outlook and commentary on future rate policy.

There is also speculation that the next Fed chair could be announced as soon as this week.



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