US Dollar Index Extends Rebound

2026-02-17 15:48 By Andre Joaquim 1 min. read

The dollar index rose to above 97.5 on Tuesday, extending the rebound from earlier in the session as markets assessed the rate outlook for the Federal Reserve against those of other major central banks.

While a tame inflation reading for January consolidated bets that the US central bank will deliver more than one rate cut this year, a robust macroeconomic backdrop favored calls by more hawkish members of the FOMC that have recently been rotated into the voting group.

These were recently backed by sharp growth in non-farm employment during January and the upswing in employment counts by the ADP.

Additionally, GDP data due later this week is expected to show another quarter of expansion.

Pullbacks in G10 currencies also aided the greenback.

Slower wage growth in the UK pressured the pound sterling, and declines in gauges of underlying inflation weakened the Canadian dollar.



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