Dollar Falls 2% in January

EthereumCraftsman · 2026-01-30T12:45:33+00:00

The dollar index fell to around 96.4 after Trump's Fed chair nomination of Warsh, seen as hawkish but supportive of interest rate cuts. The dollar dropped 2% in January due to geopolitical tensions and shifting tariffs, while a provisional deal was reached to prevent a government shutdown.

EthereumCraftsman

2026-01-30 12:45:33

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The dollar index pared early gains on Friday, trading around 96.4, near early-2022 lows, following President Trump’s nomination of Kevin Warsh to succeed Jerome Powell as Fed chair, in line with earlier signals. Markets see Warsh as a more hawkish pick who would support lower interest rates, though less aggressively than other potential candidates. Investors continue to expect one Fed rate cut in June and another later in the year, possibly in October. For January as a whole, the dollar fell 2%, its worst monthly performance since June, weighed down by the “sell America” trade amid geopolitical tensions, shifting Washington policies on tariffs, and a weakening yen. Meanwhile, the White House and Senate Democrats reached a provisional deal to avert a US government shutdown, though the agreement still requires Senate approval.

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