The dollar index (DXY00) is up +0.29% today, rebounding from Tuesday's nearly 4-year low. Weakness in the yen is supporting gains in the dollar today after Treasury Secretary Bessent said the US "absolutely not" intervening in the currency market to support the yen. Market movement is limited ahead of the FOMC decision later today.
The dollar sank to a nearly 4-year low on Tuesday after President Trump said he's comfortable with the recent weakness in the dollar. Also, the dollar continues to be undercut as foreign investors pull capital from the US amid political risks. The markets remain nervous about Greenland, even though Mr. Trump said last Wednesday that there was a framework agreement for increased US access to Greenland and that he would not invade Greenland by military force.
