Dollar Halts Drop on Bessent Comments

2026-01-29 01:00 By Jam Kaimo Samonte 1 min. read

The dollar index traded above 96 on Thursday after hitting a four-year low earlier in the week, following remarks from Treasury Secretary Scott Bessent reaffirming a “strong dollar policy.” His comments contrasted with President Trump’s earlier signals that a weaker currency would be acceptable.

Bessent emphasized that strong US fundamentals and sound policies should attract capital inflows, dismissing speculation of any US intervention to sell the dollar against the yen.

The greenback had faced heavy selling pressure recently amid fears of joint US-Japan currency intervention, Trump’s remarks, and broader geopolitical, trade, and monetary policy uncertainties.

Meanwhile, the Federal Reserve left interest rates unchanged as expected, with Chair Powell signaling the central bank is likely to remain on hold for some time.

The Fed noted that economic activity continues to expand at a solid pace, unemployment shows signs of stabilization, and inflation remains somewhat elevated.



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