US Dollar Index Extends Rebound

2026-04-29 18:28 By Andre Joaquim 1 min. read

The dollar index rose to 99.9 on Wednesday, the highest in three weeks, as Federal Reserve policymakers struck a hawkish tone in their rate hold and persistent geopolitical tensions supported the safety of the greenback.

The Fed held its policy rates unchanged as expected by markets, but three FOMC members dissented against the easing bias in the central bank's signal.

This increased the thresholds for regional Fed presidents, known for being more hawkish, to vote for an eventual cut.

On top of that, Chair Powell announced he will stay in the FOMC for the meantime, removing the dovish dissenter Miran.

President Trump signaled that an agreement to lift the blockade of tankers in the Persian Gulf will only be lifted with an Iranian nuclear agreement, adding more impasses to the conflict.

The Bank of Canada signaled it does not see domestic inflation de-anchoring in its rate hold, although the BoJ delivered hawkish remarks in its meeting.

Both the ECB and BoE decide their rates tomorrow.



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