<\/p>\n\n\n\n
The U.S. dollar weakened further on Wednesday, hovering near a four-year low and extending sharp losses from the previous session, as investors focused on the Federal Reserve\u2019s upcoming interest rate decision.<\/p>\n\n\n\n
At 04:00 ET (09:00 GMT), the Dollar Index\u2014which measures the greenback against a basket of six major currencies\u2014edged 0.1% lower to 96.010, around levels last seen in February 2022, after dropping 0.5% on Tuesday.<\/p>\n\n\n\n
The greenback is facing mounting pressure amid growing uncertainty over U.S. President Donald Trump\u2019s policymaking and rising concerns about the Federal Reserve\u2019s independence.<\/p>\n\n\n\n
U.S. authorities conducted rate checks on USD\/JPY late last week\u2014a move often interpreted as a precursor to official intervention\u2014leaving traders unsure whether a weaker dollar has now become an unofficial policy goal.<\/p>\n\n\n\n
Trump brushed off concerns about the dollar\u2019s recent weakness late Tuesday, adding fuel to speculation.<\/p>\n\n\n\n
The Fed is widely expected to leave interest rates unchanged later in the session, shifting attention to Chair Jerome Powell\u2019s remarks for clues on the timing of potential rate cuts later this year.<\/p>\n\n\n\n
Powell\u2019s term ends in May, and Trump said on Tuesday that he will soon announce his pick for the next Fed chair. Trump has repeatedly criticized Powell for being too slow to ease rates, raising concerns that a successor could weaken the central bank\u2019s independence.<\/p>\n\n\n\n
In Europe, EUR\/USD slipped 0.4% to 1.1988, pulling back from levels last seen in June 2021 after the euro surged on broad dollar weakness.<\/p>\n\n\n\n
The European Central Bank meets next week and is widely expected to keep rates on hold at 2% for a fifth consecutive meeting, with eurozone inflation restrained and the economy proving more resilient than expected.<\/p>\n\n\n\n
Still, ECB policymakers may need to consider another rate cut if further euro strength starts to weigh on inflation, Austrian central bank governor Martin Kocher told the Financial Times on Wednesday.<\/p>\n\n\n\n
GBP\/USD fell 0.4% to 1.3794, easing after climbing to its strongest level since October 2021 in the prior session.<\/p>\n\n\n\n
In Asia, USD\/JPY rose 0.2% to 152.58 after sharp declines earlier in the week, as markets remain alert to the risk of intervention by Tokyo. Prime Minister Sanae Takaichi has warned against excessive yen volatility, while speculation persists over a coordinated U.S.-Japan move to stabilize the currency.<\/p>\n\n\n\n
Elsewhere, USD\/CNY slipped 0.1% to 6.9451, marking a 31-month low as the yuan continued to strengthen with support from Beijing.<\/p>\n\n\n\n
AUD\/USD dipped 0.1% to 0.7003, retreating from a near three-year high hit in the previous session. Australian inflation data released Wednesday came in hotter than expected for December and the fourth quarter, boosting bets that the Reserve Bank of Australia could hike rates next week.<\/p>\n","protected":false},"excerpt":{"rendered":"
The U.S. dollar weakened further on Wednesday, hovering near a four-year low and extending sharp losses from the previous session, as investors focused on the Federal Reserve\u2019s upcoming interest rate decision. At 04:00 ET (09:00 GMT), the Dollar Index\u2014which measures the greenback against a basket of six major currencies\u2014edged 0.1% lower to 96.010, around levels …<\/p>\n","protected":false},"author":9,"featured_media":123061,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-123127","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/123127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=123127"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/123127\/revisions"}],"predecessor-version":[{"id":123128,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/123127\/revisions\/123128"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/123061"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=123127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=123127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=123127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}