The U.S. dollar holds steady as investors evaluated the latest geopolitical and economic developments. The focus remained on Ukraine peace negotiations and new tariff threats from President Donald Trump.
By 07:20 ET (12:20 GMT), the U.S. dollar index inched up 0.1% to 107.21. Last week, it declined by 1.2%, reflecting market uncertainty. Meanwhile, the euro weakened by 0.2% against the dollar, trading at $1.0426.
On Tuesday, Trump mentioned a possible meeting with Russian President Vladimir Putin before February ends. He noted that Moscow "wants to do something" to end the Ukraine conflict. However, negotiations remain complicated, with Russia maintaining a hard stance, especially on Ukraine’s NATO membership.
Critics pointed out that Ukraine was absent from these discussions. Kyiv firmly stated it would not accept a peace deal brokered without its participation. The situation adds uncertainty to global markets, keeping the dollar steady.
Trump also announced potential tariffs on imported cars, semiconductors, and pharmaceuticals. He suggested levies could reach 25%, raising concerns among economists. Some analysts fear these tariffs may drive inflation higher, forcing the Federal Reserve to reconsider interest rate cuts.
The Fed will release its latest meeting minutes on Wednesday, which may offer insights into how these tariffs could impact future monetary policies. A hawkish stance might strengthen the dollar, while a dovish approach could weaken it.
In the U.K., inflation surged beyond expectations in January, reaching a 10-month peak of 3.0%. The British pound fluctuated in response to the data, highlighting economic uncertainties.
In Japan, the yen remained steady against the dollar holds steady despite a widening trade deficit. Although exports rose, an unexpected import surge created concerns about economic stability. ING analysts noted that U.S. tariffs could further cloud Japan’s economic outlook.
Meanwhile, China’s offshore yuan (USD/CNH) edged up 0.2%, while the onshore yuan (USD/CNY) remained stable. Traders are closely watching policy moves that could impact global currency dynamics.
For more Forex updates and expert analysis about the dollar holds steady, check out our website: Fixio Markets.
Dollar holds steady as traders assess Ukraine peace talks and Trump's new tariff threats. Fed policy updates could impact currency movements.
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