FX.co ★ Dollar Holds Gains as Markets Weigh Fed Outlook

The U.S. Dollar Index maintained its upward trajectory, reaching approximately 103.8 on Friday, as investors continued to evaluate the Federal Reserve's stance on monetary policy. On Wednesday, the Federal Reserve elected to leave its policy unchanged while indicating the possibility of two interest rate cuts within the year. The central bank also acknowledged increasing risks to growth, employment, and inflation in its latest economic forecasts. Federal Reserve Chair Jerome Powell alleviated fears regarding the inflationary effects of President Donald Trump's tariffs, describing them as "transitory," and emphasized that the central bank is not in a hurry to implement further rate cuts. Furthermore, traders are preparing for the April 2 deadline concerning Trump's reciprocal tariffs on nations that have levied duties on U.S. goods. Additionally, the dollar gained strength as apprehensions about global growth and trade tensions exerted pressure on other major currencies, prompting caution among investors.