Dollar Holds Firm on Hawkish Fed View

2026-02-25 02:07 By Jam Kaimo Samonte 1 min. read

The dollar index remained around 97.8 on Wednesday after advancing in the previous session, supported by rising expectations that the Federal Reserve will keep interest rates unchanged for an extended period.

Fed official Susan Collins noted that holding rates steady is likely appropriate given an improving labor market alongside persistent inflation risks, while Thomas Barkin added that monetary policy is well-positioned to manage risks around the economic outlook.

Despite this, markets still price in roughly three 25-basis-point rate cuts from the Fed this year.

Meanwhile, the US began implementing a temporary 10% global tariff on Tuesday, which the White House is reportedly seeking to raise to 15%, following the Supreme Court’s decision last week to strike down Donald Trump’s reciprocal tariffs.

Geopolitical risks also weighed, with investors focused on the third round of US-Iran nuclear talks scheduled in Geneva on Thursday.



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