The dollar index climbed to 96.4 on Wednesday, bouncing back after hitting a four-year low of 96 earlier in the day. This shift occurred as market participants scaled back their expectations of a U.S.-led devaluation aimed at assisting exporters. Treasury Secretary Bessent reaffirmed the United States' dedication to maintaining a strong dollar policy, explicitly stating that there is no intervention in the currency market to bolster the yen. This contradicted prior beliefs that the U.S. was orchestrating a market intervention, especially after the New York Federal Reserve conducted a rate check on the USD/JPY on behalf of the presidential administration. Despite persistent indications from the administration welcoming a weaker dollar to rectify the trade deficit, rising economic policy uncertainty in the U.S., triggered by a series of tariff threats against key trading partners, has prompted international investors to veer away from dollar-backed assets. Meanwhile, the Federal Reserve is poised to maintain its funds rate in its first decision of the year.