19.09.202513:07:46UTC+00Dollar Rises for 3rd Day

The dollar index continued its upward trajectory for the third consecutive session on Friday, reaching 97.8. This marked a recovery from the lows of 2022 encountered earlier in the week. The movement followed the Federal Reserve’s inaugural interest rate cut of the year and its revised economic projections. On Wednesday, the Fed announced a 25 basis point reduction in the funds rate, aligning with expectations, and projecting a further 50 basis point cut within the year, alongside an additional 25 basis point reduction anticipated in 2026. During the post-meeting press conference, Chair Jerome Powell emphasized a considerate approach, labeling the cut as a "risk management" measure while cautioning that "there are no risk-free paths." Additionally, policymakers revised GDP growth forecasts upward, highlighting the economy's resilience. Concurrently, initial jobless claims were reported below expectations, indicating that the labor market might not be as weak as previously feared. On Friday, Minneapolis Fed President Neel Kashkari endorsed the Fed’s decision and anticipated two more rate cuts for the year. The dollar strengthened most notably against the British pound, the euro, and the Swiss franc.