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USDX Under Pressure as Tariff Uncertainty Deepens

The US Dollar Index (USDX) eased to 97.62, down 0.19%, as trade policy developments reintroduced volatility into currency markets. The United States has implemented a temporary 10% global tariff, with reports suggesting the levy may be increased to 15% following the Supreme Court’s rejection of earlier reciprocal tariff measures. The evolving tariff framework has created uncertainty around inflation dynamics, global trade flows and broader growth prospects. Although higher tariffs can, in theory, support the dollar through elevated inflation and a delayed rate-cut cycle, policy unpredictability has instead tempered investor confidence and capped upside momentum. Federal Reserve officials have reiterated that maintaining current interest rate levels remains appropriate, citing labour market resilience and persistent inflation risks. Nevertheless, futures markets continue to price in approximately three 25-basis-point cuts this year, highlighting a divergence between official guidance and market expectations. This disconnect has contributed to range-bound conditions in the Dollar Index. Discover how tariff policy shifts, Federal Reserve positioning and key technical thresholds may influence the next phase of US Dollar Index performance.

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Publication date:

2026-02-25 08:32:03 (GMT)

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