FX.co ★ Dollar Languishes at Over 4-Month Lows

The dollar index remained steady at around 97 on Tuesday after declining for three consecutive sessions, hovering near its lowest point in over four months as the Federal Reserve commenced its two-day policy meeting later that day. It is widely anticipated that the central bank will maintain current interest rates, although concerns about its independence from political pressure continue to be a significant focus. There is increasing speculation that a new Fed chair could be announced this week, with President Donald Trump potentially choosing a candidate who favors a more dovish monetary policy. Moreover, the dollar faced pressure amid fears of another government shutdown, following threats by Democratic leaders to obstruct a $1.2 trillion funding package should it include increased allocations for Homeland Security. Additionally, the "sell America" sentiment was exacerbated by geopolitical and trade tensions. Speculation concerning a prospective joint currency intervention by US and Japanese authorities supported the yen, further pressuring the dollar.