Dollar Holds Gains on Warsh Nomination

2026-02-02 01:27 By Jam Kaimo Samonte 1 min. read

The dollar index remained above 97 on Monday after rising about 1% in the previous session, supported by President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chairman.

Markets view Warsh as a more hawkish pick who would favor lower interest rates, though less aggressively than other potential candidates.

He is also expected to rein in the Fed’s balance sheet, a move that typically strengthens the dollar by reducing money supply.

Traders continue to price in two Fed rate cuts this year under Warsh, though the FOMC remains divided over the pace and scale of further easing.

The dollar also extended gains against the yen after Japanese Prime Minister Sanae Takaichi said over the weekend that a weak yen could be a major opportunity for export industries.



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