Dollar Holds Gains on Hawkish Fed Hints

2026-02-19 01:36 By Jam Kaimo Samonte 1 min. read

The dollar index hovered around 97.7 on Thursday after surging in the previous session, as strong US economic data and surprise hawkish signals from the Federal Reserve buoyed the currency.

Minutes from the Fed’s latest meeting showed policymakers were split on the path for US rates, suggesting that the next chairman could face challenges in implementing rate cuts.

Several participants also favored language that would have explicitly left open the option of raising the federal funds rate should inflation remain above target.

Traders slightly trimmed expectations for Fed rate cuts this year but still anticipate two 25 bps reductions before year-end.

The greenback was further supported by data showing US industrial production rose at its fastest pace in nearly a year, core capital goods orders exceeded forecasts, and housing starts reached a five-month high.

Investors now turn to the upcoming jobless claims., PCE inflation and GDP reports for additional guidance on the rates outlook.



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Dollar Holds Gains on Hawkish Fed Hints
The dollar index hovered around 97.7 on Thursday after surging in the previous session, as strong US economic data and surprise hawkish signals from the Federal Reserve buoyed the currency. Minutes from the Fed’s latest meeting showed policymakers were split on the path for US rates, suggesting that the next chairman could face challenges in implementing rate cuts. Several participants also favored language that would have explicitly left open the option of raising the federal funds rate should inflation remain above target. Traders slightly trimmed expectations for Fed rate cuts this year but still anticipate two 25 bps reductions before year-end. The greenback was further supported by data showing US industrial production rose at its fastest pace in nearly a year, core capital goods orders exceeded forecasts, and housing starts reached a five-month high. Investors now turn to the upcoming jobless claims., PCE inflation and GDP reports for additional guidance on the rates outlook.
2026-02-19
US Dollar Index Holds Traction
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