FX.co ★ Dollar Extends Gains

The US dollar index climbed to approximately 99.7 on Wednesday, building on gains from the previous day. This rise comes as US consumer confidence improves, thereby enhancing market sentiment toward the dollar. Additionally, President Trump’s decision to postpone a proposed 50% tariff on the European Union has alleviated fears of intensifying trade tensions, thereby brightening prospects for US assets. Concurrently, it's been reported that European leaders have urged leading companies and CEOs to prepare their US investment strategies in advance of forthcoming trade talks with Washington. On the monetary policy front, Minneapolis Fed President Neel Kashkari stated on Tuesday that interest rates should remain unchanged until there is a clearer understanding of the inflationary effects resulting from higher tariffs. On the external front, the dollar also received a boost from a steep slide in the yen. This decline followed rumors that Japanese authorities might intervene to stabilize the bond market, potentially by curtailing the issuance of super-long-term bonds after a recent surge in yields.