23.02.202613:06:14UTC+00US Dollar Holds Near 1-Month High

The dollar index hovered around 97.8 on Monday, trimming earlier losses to stay close to a one‑month high as global markets reassessed whether recent changes to US trade policy would meaningfully affect the balance of payments. Over the weekend, President Trump raised the new Section 122 tariffs to 15% after the Supreme Court struck down the set of country-specific tariffs enacted under IEEPA 10 months ago.

The President did not clarify whether the latest measure would alter existing trade agreements negotiated by his administration, and Congress is widely expected not to extend the tariffs beyond the fourth quarter. The dollar also drew support from weakness in G10 currencies: softer wage growth in the UK weighed on the pound, while declines in core inflation indicators undermined the Canadian dollar.

In addition, dollar supply is perceived as constrained by incoming Fed Chair Warsh’s preference for maintaining a relatively small Federal Reserve balance sheet.