The US dollar index (DXY), which tracks the greenback against a basket of currencies, is consolidating the previous day’s forceful move higher to its highest level in over a week and is trading in a narrow range during Thursday’s Asian session. The index is currently trading around 97.70, a level that is almost unchanged throughout the day.
Minutes from the FOMC’s January meeting revealed Wednesday that policymakers were deeply divided over the need and timing of further interest rate cuts amid inflation concerns. In fact, several Federal Reserve (Fed) officials have indicated that further interest rate cuts may be warranted if inflation falls as expected, while others cautioned that easing monetary policy too soon could threaten the central bank’s 2% inflation target.
This comes on top of last week’s January non-farm payrolls (NFP) report and tempers expectations for more aggressive policy easing by the US central bank, which in turn acts as a tailwind for the US dollar (USD). Moreover, reports that the US military is ready to strike Iran as early as this weekend keep geopolitical risks in play and further underscore the dollar’s sheltered haven status.
That said, investors continue to price in the possibility of at least two Fed rate cuts in 2026. Bets were lifted by lower U.S. consumer inflation data last Friday, which, along with positive market sentiment, kept dollar bulls from making aggressive bets. Attention will now turn to Friday’s US Personal Consumption Expenditures (PCE) price index, which should provide a fresh boost to the USD.
US dollar price this week
The table below shows the percentage change in the United States Dollar (USD) against the major currencies traded this week. The US dollar was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.67% | 1.13% | 1.52% | 0.58% | 0.09% | 0.91% | 0.52% | |
| EUR | -0.67% | 0.46% | 0.86% | -0.08% | -0.59% | 0.25% | -0.14% | |
| GBP | -1.13% | -0.46% | 0.13% | -0.54% | -1.05% | -0.22% | -0.60% | |
| JPY | -1.52% | -0.86% | -0.13% | -0.93% | -1.39% | -0.59% | -0.94% | |
| BOOR | -0.58% | 0.08% | 0.54% | 0.93% | -0.54% | 0.34% | -0.06% | |
| AUD | -0.09% | 0.59% | 1.05% | 1.39% | 0.54% | 0.84% | 0.45% | |
| NZD | -0.91% | -0.25% | 0.22% | 0.59% | -0.34% | -0.84% | -0.39% | |
| CHF | -0.52% | 0.14% | 0.60% | 0.94% | 0.06% | -0.45% | 0.39% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
