Dollar's Steady Hold Amid Global Rate Speculations

The dollar maintained a stable stance on Thursday after a sharp drop earlier in the week, driven by investor uncertainty over potential tariffs by President Trump and global central bank rate decisions. The dollar dipped over 1% this week, primarily due to expected tariffs that remained unannounced.


Devdiscourse News Desk | Updated: 23-01-2025 21:48 IST | Created: 23-01-2025 21:48 IST
Dollar's Steady Hold Amid Global Rate Speculations
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The dollar showed little movement on Thursday, maintaining its position after a significant drop earlier in the week. Investors remain cautious as they await clarity on potential tariffs from U.S. President Donald Trump and forthcoming interest-rate decisions from global central banks.

While Trump plans to address the World Economic Forum in Davos, and hold discussions with business leaders, markets are poised for more volatility until definitive announcements are made. The Bank of Japan is expected to raise rates after its meeting on Friday, while the U.S. Federal Reserve and European Central Bank have rate decisions lined up for next week.

Despite the greenback achieving a recent high, uncertainties continue to cloud the currency market, especially after Trump's initial tariff plans did not materialize. Market focus now shifts to the ECB, where a rate cut seems likely, alongside Trump's exploration of tariffs on imports from China, Mexico, and Europe.

(With inputs from agencies.)

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