The US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, traded higher around 97.40 during Friday\u2019s early European session. The dollar gained traction after the Federal Reserve cut interest rates as expected but adopted a less dovish tone than markets anticipated.<\/p>\n\n\n\n
On Wednesday, the Fed lowered its benchmark rate by 25 basis points, a move widely priced in by traders. Chair Jerome Powell described the cut as a \u201crisk-management\u201d step to counter a cooling labor market. However, he stressed that the central bank was not rushing toward aggressive easing, preferring a \u201cmeeting-by-meeting\u201d strategy based on incoming data.<\/p>\n\n\n\n
This cautious stance boosted the dollar. \u201cInvestors judged the Fed\u2019s guidance less dovish than expected,\u201d said MUFG analyst Soojin Kim. Powell\u2019s comments on tariff-driven inflation risks further reinforced the dollar\u2019s strength in global markets.<\/p>\n\n\n\n
Separately, political developments in Washington added a layer of uncertainty. CNBC reported that US President Donald Trump asked the Supreme Court to overturn lower court rulings blocking his attempt to replace Fed Governor Lisa Cook, who was appointed under former President Joe Biden.<\/p>\n\n\n\n
The White House accused Cook of mortgage fraud related to government-backed home loans, though no charges have been filed and Cook has denied the allegations. The legal battle raises fresh concerns over the Fed\u2019s independence, a factor that could eventually weigh on the DXY if political pressure intensifies.<\/p>\n\n\n\n
For now, the dollar remains supported by expectations that the Fed will move cautiously on further rate cuts. Traders are closely watching upcoming economic data, including inflation and labor market reports, to gauge whether Powell\u2019s \u201cmeeting-by-meeting\u201d strategy will keep the dollar firm in the weeks ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"
The US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, traded higher around 97.40 […]<\/p>\n","protected":false},"author":7,"featured_media":108667,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2936,2935],"tags":[656,642,643],"class_list":["post-102717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-currencies","category-markets","tag-analysis-tag","tag-currencies-tag","tag-dollar"],"acf":[],"yoast_head":"\n