On the 16th, the U.S. dollar index rose 0.07% to close at 99.389, reflecting steady demand for the greenback amid cautious market sentiment. Despite a quiet economic calendar, traders remained focused on signals from the Federal Reserve regarding future rate policy.
Global Markets Remain Cautious
Foreign exchange volatility has picked up recently, with slowing inflation in the eurozone and soft economic momentum in parts of Asia supporting the dollar's relative strength. Market participants are now turning their attention to the upcoming core PCE inflation data, a key input for Fed decision-making.
- The dollar index gained nearly 0.3% this week
- Euro weakened slightly against the dollar to 1.0850
- Yen remained under pressure amid expectations of dovish BoJ policy
Outlook Hinges on Policy Trajectory
Analysts suggest the dollar’s medium-term path will depend on real interest rate differentials and global growth dynamics. Stronger-than-expected U.S. economic performance could fuel further gains, though geopolitical tensions and trade developments may prompt short-term fluctuations.