The dollar index fell 0.3% to around 96 on Thursday, paring gains from the previous session as the lift from Treasury Secretary Scott Bessent’s reaffirmation of a strong dollar policy proved short-lived. Bessent dismissed speculation of any US intervention to sell the dollar against the yen, in contrast to President Donald Trump’s indications that the administration is comfortable with a weaker greenback. A continued flight into real assets also weighed on the currency, with gold, silver, and copper climbing to fresh record highs as geopolitical and trade risks, along with policy uncertainty in Washington, undermined confidence in the world’s reserve currency. Meanwhile, the Federal Reserve left interest rates unchanged as expected, with Chair Jerome Powell signaling that the central bank is likely to remain on hold for some time. The Fed noted that economic activity continues to expand at a solid pace, unemployment shows signs of stabilization, and inflation remains somewhat elevated.
