2026.01.2905:57:25UTC+00Dollar Slips as Bessent Boost Fades

On Thursday, the dollar index experienced a 0.3% decline, settling at approximately 96, reversing some of the gains made in the previous session. This decline followed the transient boost from Treasury Secretary Scott Bessent’s reaffirmation of a robust dollar strategy. Bessent refuted any conjecture that the U.S. might engage in selling the dollar against the yen, a stance contrasting with President Donald Trump's previous signals of the administration's comfort with a depreciating dollar. Simultaneously, investor migration towards tangible assets exerted further pressure on the currency, as gold, silver, and copper surged to new record highs amid mounting geopolitical and trade tensions, as well as policy ambiguities in Washington, which eroded confidence in the world’s reserve currency. Additionally, the Federal Reserve maintained interest rates unchanged, consistent with projections, with Chair Jerome Powell indicating the central bank's intention to remain steady for a foreseeable future. The Fed highlighted ongoing solid economic growth, signs of stabilization in unemployment, and a continued trend of somewhat high inflation.