FX.co ★ Dollar Index Approaches 100

The dollar index rose above 99.9 on Wednesday, building on a near 0.4% increase from the day before. This upward movement comes as traders process the latest Federal Open Market Committee (FOMC) minutes and look for new market influences amid ongoing trade tensions and fiscal policy developments during the Trump administration. Insights from the recent FOMC meeting indicate that policymakers are adopting a cautious stance, opting to evaluate the economic repercussions of recent government actions and tariff implementations. Officials noted heightened risks concerning rising unemployment and inflation. On Sunday, President Trump delayed the enforcement of a proposed 50% tariff on EU imports to July 9th, shortly after announcing this extensive policy. The dollar exhibited significant strength, particularly against the yen, following reports suggesting possible intervention by Japanese authorities to stabilize their bond market. Despite this recent rally, the dollar remains near its lowest levels seen in 2023, specifically in April, and has declined by more than 7% so far this year.