2026.01.2316:41:17UTC+00DXY Falls Toward 3-Month Low

The dollar index declined to 98.1 on Friday, nearing its lowest point in over three months as investors continued to shy away from the US currency due to uncertainty surrounding American economic policy. Initially, President Trump warned major European nations opposing his Greenland acquisition plan with potential new tariffs. His administration adopted a hardline stance towards Denmark and other NATO allies but later reversed, suspending any tariffs and withholding details on possible agreements. Additionally, expectations are mounting that the Federal Reserve will implement more interest rate cuts this week compared to other major central banks. Data from the Conference Board indicated a drop in the US's leading economic indicator, and the University of Michigan's survey revised inflation expectations downward. In contrast, the Bank of Japan maintained a hawkish stance, while Purchasing Managers' Index (PMI) aggregates in the Eurozone suggested stable growth, and data from the UK supported the hawkish members of the Bank of England's Monetary Policy Committee.