Dollar Index Hovers at 1-Month High

2026-02-25 14:18 By Andre Joaquim 1 min. read

The dollar index rose to the 99 mark on Wednesday, its highest in one month, as global markets downplayed concerns of uncertain economic policy by the White House to maintain their exposure to dollar-denominated assets.

President Trump raised his fresh section 122 tariffs to 10%, despite the latter threats of raising them to 15%, after the Supreme Court struck down the series of country-targeting tariffs that were passed under IEEPA 10 months ago.

Concerns that the White House would push for higher levies were also tame as tariff rhetoric was relatively muted in the President's State of the Union speech, while Congress is unlikely to extend the measures past this fourth quarter.

In the meantime, the supply of dollars in the financial system may rise to a softer magnitude due to incoming Federal Reserve Chairman Kevin Warsh's preference on a small Fed balance sheet.

Also, concerns of sticky inflation drove rate traders to push back bets of its next rate cut to September.



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