The dollar index (DXY00) Wednesday rose by +0.10%. The dollar posted moderate gains Wednesday after the Fed kept interest rates unchanged and removed the reference in the post-FOMC meeting statement to inflation making progress, suggesting the Fed may remain on pause for longer. The dollar also found support in comments from Fed Chair Powell, who said economic activity has continued to expand at a solid pace and that the Fed does not need to be in a hurry to cut interest rates.
The dollar fell back from its best levels Wednesday afternoon as tariff concerns eased when US Commerce Secretary nominee Lutnick said Canada and Mexico could avoid new tariffs this weekend if they clamp down on border security.
