US Dollar Index Holds Steady at 97.40 Amid Trump’s New Tariffs and Fed Rate Watch

US Dollar Index Holds Steady at 97.40 Amid Trump’s New Tariffs and Fed Rate Watch

The US Dollar Index (DXY), which measures the Greenback's strength against six major currencies, remains steady near 97.40 during the European trading session on Thursday. This stability follows a series of new tariffs announced by US President Donald Trump affecting 21 countries.

Trump’s Tariffs Impact Currency Markets

President Trump's recent tariff announcements have introduced fresh trade tensions by imposing new tariff rates across multiple nations. Despite this, the US Dollar shows resilience, trading close to a two-week high around 97.80 earlier in the session.

Federal Reserve Watch: Interest Rate Outlook

Market participants are closely watching the upcoming Federal Reserve policy meeting. Fed official Christopher Waller is expected to advocate for lower interest rates, which could influence the Dollar’s trajectory. The Fed minutes due later this month will provide further insight into the central bank's stance.

Market Outlook and Key Drivers

The combined effect of escalating tariffs and the Fed’s monetary policy signals keeps the US Dollar Index within a narrow range. Traders should monitor further tariff developments and Fed communications for cues on the Dollar’s future momentum.