1. Hey everyone The U.S. Dollar Index (DXY) climbed about 0.54% on Thursday, reaching 99.37, its highest level since August 1st. The move seems to be driven by broad weakness in the yen and the euro, plus the latest Fed minutes that suggest officials remain divided over the timing of future rate cuts JPY fell to 153.22 per dollar, its weakest level since mid-February. The drop came after Japan’s new ruling party leader Sanae Takaichi hinted that fiscal expansion and BOJ policy might stay aligned, which markets took as a sign that Japan will continue with loose monetary policy.
    2. EUR also slipped, weighed down by weaker economic data and rising expectations that the ECB might move to cut rates earlier than the Fed.
    3. The Fed minutes show a split between those who think rate cuts could start this year and others who believe inflation is still too sticky to justify easing soon.
    4. The “higher for longer” stance continues to provide a floor under the dollar.

    So right now, the dollar looks strong for both fundamental (interest rate differentials) and sentiment (safe-haven) reasons,
    How might this affect U.S. multinationals and export-heavy sectors if the dollar remains elevated?

    usd, Index hits 99.37 ,Yen and Euro weakness push the dollar higher, while Fed minutes show split views on rate cuts
    byu/Even_Boysenberry9131 ininvesting



    Posted by Even_Boysenberry9131

    1 Comment

    1. isinkthereforeiswam on

      Gold mining ETFs just dropped as a result even as gold keeps going up. I think there’s a lot of automated trade happening when signals get hit. Long term I don’t think the dollar is recovering just having a momentary uptick.

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