FX.co ★ Dollar Gains for 1st Time in 5 Sessions

On Wednesday, the dollar rose to a value of 96.6, reversing a four-day slump. This uptick followed statements by Treasury Secretary Bessent, which alleviated expectations that the U.S. might intervene in currency markets by selling dollars in exchange for yen. Bessent emphasized that the U.S. consistently favors a strong currency policy and categorically denied any intervention in Japan’s currency markets. Earlier, the dollar had plummeted to its lowest point in 2022 due to speculation about a possible U.S. intervention and after President Trump expressed no concern over the dollar's recent decline. Further pressure on the dollar stemmed from renewed tariff threats and apprehensions surrounding a potential government shutdown, contributing to the "sell America" sentiment. Concurrently, the Federal Reserve maintained the federal funds rate, halting after a series of three rate cuts the previous year. The Fed also marginally enhanced its outlook on economic growth, supporting the prevailing expectation that the next rate cut might happen in June.