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.



News Stream
Dollar Index Hovers at 1-Month High
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.
2026-02-25
Dollar Slips After Trump Speech
The dollar index slipped below 97.8 on Wednesday, giving back some of the previous session’s gains after President Donald Trump offered no indication of altering his tariff policies in his State of the Union address. Trump expressed confidence that foreign countries would honor their trade agreements and suggested that tariffs could eventually replace income taxes. The US began implementing a temporary 10% global tariff on Tuesday, which the White House is reportedly aiming to raise to 15%, following the Supreme Court’s decision to strike down Trump’s reciprocal tariffs. On the monetary policy front, Susan Collins stated that holding interest rates steady is likely appropriate amid an improving labor market and persistent inflation risks, while Thomas Barkin added that policy is well-positioned to manage economic risks. Nevertheless, markets continue to price in roughly three 25-basis-point rate cuts from the Fed this year.
2026-02-25
Dollar Holds Firm on Hawkish Fed View
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.
2026-02-25