Dollar steady as tariff threats, fed decisions loom

The dollar index held steady around 108.2 on Thursday after experiencing some pressure earlier in the week, as investors awaited more clarity on U.S. President Donald Trump’s policy intentions.

Dollar steady as tariff threats, fed decisions loom

The index is down about 1% this week, following Trump’s decision to refrain from implementing tariffs, which initially raised concerns about potential inflationary pressures. However, Trump has since issued tariff threats against China, Mexico, Canada, and the EU, adding uncertainty to market sentiment. Investors are also closely watching next week’s Federal Reserve monetary policy meeting. The central bank is widely expected to keep interest rates unchanged in January, with markets anticipating a rate cut in July and potentially another reduction later in the year.

BOJ hikes, ECB may cut rates, adding global uncertainty

In contrast, the Bank of Japan is expected to raise rates on Friday. At the same time, the European Central Bank may also implement a rate cut next week, adding further complexity to the global monetary landscape.