The dollar found itself on unsteady ground on Thursday, as uncertainties surrounding U.S. economic policies and geopolitical events continued to cause ripples. Despite supportive remarks from the White House and European officials post-currency rout, doubts over the dollar’s trajectory persisted.
On the monetary policy front, the Federal Reserve issued a calm statement about the U.S. labor market and inflation risks, hinting that interest rates may remain steady for a while. The dollar took a hit, reaching a four-year low earlier this week, exacerbated by President Donald Trump’s seeming indifference to the currency’s decline. However, Treasury Secretary Scott Bessent later reassured that Washington supports a strong-dollar policy.
Meanwhile, the euro traded just below the $1.20 mark in Asia after its rise against the dollar, which has seen the euro strengthen considerably. Analysts are watching how the Fed’s independence issues, including a Supreme Court ruling on an effort to dismiss Fed Governor Lisa Cook, will unfold as these factors critically influence the dollar’s future.
(With inputs from agencies.)