Dollar Hits Two-Month Low

2026-05-01 14:32 By Joana Ferreira 1 min. read

The dollar index fell below 98 on Friday, hitting its lowest level since late February, after posting its largest one-day decline since mid-March in the previous session.

The drop was largely driven by a sharp rally in the yen, following suspected intervention by Japanese authorities.

Reports indicated that US officials had been notified in advance, aligning with the G7 practice of coordinating major currency interventions.

On the economic front, fresh data revealed that US manufacturing growth was unchanged at a four-year high in April, amid a strong new order growth, further lengthening of supplier deliveries, and a sharp rise in price pressures amid the ongoing Iran conflict.

On monetary policy, Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari both expressed concerns that the Fed’s latest policy statement was too dovish, underscoring the potential challenges incoming Fed Chair Kevin Warsh may face if he attempts to lower interest rates.



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Dollar Hits Two-Month Low
The dollar index fell below 98 on Friday, hitting its lowest level since late February, after posting its largest one-day decline since mid-March in the previous session. The drop was largely driven by a sharp rally in the yen, following suspected intervention by Japanese authorities. Reports indicated that US officials had been notified in advance, aligning with the G7 practice of coordinating major currency interventions. On the economic front, fresh data revealed that US manufacturing growth was unchanged at a four-year high in April, amid a strong new order growth, further lengthening of supplier deliveries, and a sharp rise in price pressures amid the ongoing Iran conflict. On monetary policy, Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari both expressed concerns that the Fed’s latest policy statement was too dovish, underscoring the potential challenges incoming Fed Chair Kevin Warsh may face if he attempts to lower interest rates.
2026-05-01
Dollar Holds Decline on Yen Intervention
The dollar index traded close to 98 on Friday after dropping nearly 1% in the prior session, with losses driven largely by a sharp advance in the yen following suspected intervention by Japanese authorities in currency markets. Reports suggested US officials were informed in advance of the move, consistent with a G7 understanding that major currency interventions are typically communicated among members. On the macroeconomic front, fresh data showed the US economy expanded at an annualized 2% in the first quarter, rebounding from a late 2025 slowdown tied to a government shutdown. Consumer spending increased 1.6%, supported by resilient demand for services, while separate labor data indicated jobless claims falling to multi-decade lows. The releases followed the recent decision by the Federal Reserve to keep interest rates unchanged, though policymakers acknowledged growing internal divisions as economic uncertainty persists stemming from the Middle East conflict.
2026-05-01
DXY Eases on Thursday
The dollar index slipped to almost 98 on Thursday, as oil prices pulled back from a four-year high, yen strenghten sharply and fresh data pointed to resilience in the US economy. Figures from the Bureau of Economic Analysis showed GDP grew at an annualized 2% in the first quarter, rebounding from a late 2025 slowdown linked to the government shutdown. Consumer spending rose 1.6%, supported by solid demand for services, while separate data showed jobless claims falling to multi-decade lows. The releases came shortly after the Federal Reserve held interest rates steady but highlighted growing divisions among policymakers amid uncertainty tied to the Middle East conflict. Meanwhile, the yen strengthened as much as 3% as traders speculated Japanese authorities may be intervening, following a strong warning against excessive currency weakness.
2026-04-30