2026.02.0602:03:38UTC+00Dollar Holds Near 2-Week High

On Friday, the dollar index hovered just below 98, maintaining its position near a two-week peak as a widespread decline in stocks, commodities, and cryptocurrencies increased the demand for the U.S. currency. The dollar's surge has been notable since President Donald Trump put forward Kevin Warsh as a candidate for the next Federal Reserve chair. Warsh is known for advocating a reduced balance sheet and a more conservative approach to easing policies, which in turn alleviated worries about the Federal Reserve's independence. Additionally, this week's series of U.S. jobs data indicated potential weakening in the labor market, bolstering market expectations for a dovish stance from the Fed. Currently, markets anticipate two interest rate cuts this year, with the first likely in June and a subsequent one possibly in September. The dollar retained its strength against the euro and the British pound following the European Central Bank and the Bank of England's decisions to maintain their current policy rates. It gained the most against the yen, ahead of Japan's lower house elections.