US Dollar Holds Rebound

2026-08-11 13:27 By Andre Joaquim 1 min. read

The dollar index was at the 99.8 mark on Tuesday, holding the rebound from the two-month low of 99.5 on Friday amid fresh pressure on the yen, while markets further assessed the Federal Reserve's policy outlook.

Markets mounted on short positions on the Japanese currency after the US Treasury completed its joint intervention on the foreign exchange market with Tokyo.

Treasury Secretary Bessent had bought yen with euros in the Exchange Stabilization Fund to prevent Japan from selling more US bonds to defend their currency, but mountain fiscal pressures for Japan and the surge in US long yields drove the dollar to rebound against the yen.

Meanwhile, Cleveland Fed President Hammack reiterated her view that a Fed hike is appropriate to combat inflation ahead of tomorrow's CPI report.

The data is expected to show that core inflation measures should slow for a second month.

Still, the elevated levels of wholesale energy commodities challenge the argument for a hold.



News Stream
US Dollar Holds Rebound
The dollar index was at the 99.8 mark on Tuesday, holding the rebound from the two-month low of 99.5 on Friday amid fresh pressure on the yen, while markets further assessed the Federal Reserve's policy outlook. Markets mounted on short positions on the Japanese currency after the US Treasury completed its joint intervention on the foreign exchange market with Tokyo. Treasury Secretary Bessent had bought yen with euros in the Exchange Stabilization Fund to prevent Japan from selling more US bonds to defend their currency, but mountain fiscal pressures for Japan and the surge in US long yields drove the dollar to rebound against the yen. Meanwhile, Cleveland Fed President Hammack reiterated her view that a Fed hike is appropriate to combat inflation ahead of tomorrow's CPI report. The data is expected to show that core inflation measures should slow for a second month. Still, the elevated levels of wholesale energy commodities challenge the argument for a hold.
2026-08-11
Dollar Steadies as Traders Weigh Fed Outlook
The dollar index steadied around 99.7 on Tuesday, holding gains from the previous session as investors continued to assess the outlook for Federal Reserve monetary policy ahead of key US inflation readings following a weak July jobs report. The closely watched consumer price index report is due on Wednesday, followed by producer inflation data on Thursday. Markets are currently pricing in around a 51% chance of a 25 basis point Fed rate hike in September, up from 44% a day earlier. Cleveland Fed President Beth Hammack said several rate increases may be needed to bring inflation back down to the central bank’s 2% target. Meanwhile, uncertainty persisted over a potential deal between the US and Iran to end the war and reopen the Strait of Hormuz, keeping markets wary of inflation and the outlook for interest rates.
2026-08-11
Dollar Ticks Higher, Still Near 2-Month Low
The dollar index edged up to 99.7 on Monday, following a 0.4% decline last week that pushed the greenback to a two-month low. Traders are now awaiting this week’s CPI report for further clues on inflationary pressures, after Friday’s weaker-than-expected jobs report reduced expectations for a Fed rate hike in September. The odds of such a move currently stand at around 46%, down from approximately 64% a week ago, while the probability of the Fed holding rates is seen at about 54%. Meanwhile, traders continued to assess developments in the Middle East and ongoing talks to reopen the Strait of Hormuz, although a deal between the US and Iran appears unlikely in the near term. The dollar was mostly higher against the yen, with the Japanese currency giving back some of its intervention-driven gains while remaining well above the multi-decade low hit late last month.
2026-08-10