I last wrote about the dollar index, which measures the world’s reserve currency against the other reserve currencies, on Barchart on September 23, where I wrote:
In early 2026, President Trump will appoint the Fed’s next Chairman, and the current Chair, Jerome Powell, is not a candidate for reappointment. Meanwhile, the President is prepared to appoint new members to the central bank’s voting ranks. Any appointments will likely support the administration’s call for lower short-term rates.
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With European short-term rates over 2% below the Fed Funds Rate and the prospects for falling U.S. rates in 2026, the bottom line is that the U.S. dollar index could be on a path toward a new low for 2025, and a challenge of longer-term downside technical targets.
