23.09.202517:19:30UTC+00Dollar Holds Near 3-Year Low

On Tuesday, the dollar index hovered around the 97.3 level, remaining close to the three-year low of 96.2 reached last week. This stability comes as global markets continue to evaluate the interest rate outlook from leading monetary authorities and assess risks to the US economy amid evolving economic policies. Federal Reserve Chairman Jerome Powell emphasized that signs of a weakening job market prompted the FOMC to adjust its risk assessment, justifying a rate cut. He pointed to a rise in the unemployment rate and a slowdown in job growth as key concerns. Additionally, Powell noted that the inflationary impact of tariffs has been at the lower end of expectations, providing the Fed with more flexibility for less restrictive monetary policy. Meanwhile, predictions that the European Central Bank (ECB) has concluded its rate-cutting cycle have propelled the euro, the primary counterpart to the dollar index, to a four-year high against the US dollar. Traders also monitored the potential for another interest rate hike from the Bank of Japan (BoJ). In contrast, the Riksbank decided to lower its policy rate.