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2025-07-31 10:06:10
[Dollar Strength Continues, Fed's Hawkish Stance Fuels First Monthly Gain of the Year] 1. The US dollar index held near 99.75 on Thursday, just shy of its two-month peak of 99.987 reached the previous day. Supported by the Fed's hawkish stance and the robust US economy, the dollar is expected to post its first monthly gain since 2025, with a monthly gain estimated at over 3%. 2. Federal Reserve Chairman Powell reiterated at the latest policy meeting that "it's too early to cut interest rates," a statement that boosted the dollar. Market expectations for a Fed rate cut this year have narrowed to approximately 35 basis points. Meanwhile, trade deals between the United States and several countries have eased tariff uncertainty, with South Korea becoming the latest country to reach an agreement and subject to 15% tariffs. 3. Investors are closely watching the upcoming Bank of Japan interest rate decision and whether it will signal a rate hike. USD/JPY retreated slightly on Thursday, currently trading around 148.92, down approximately 0.37%. Major non-US currencies have been under pressure recently. The euro and pound have both fallen by about 3% this month. On Thursday, non-US currencies rebounded slightly in the Asian market. The euro rose 0.23% against the dollar to around 1.1428, and the pound rose about 0.16% against the dollar to around 1.3256.
