Dollar index slips to one-week low under 97 mark

The dollar index slipped under 97 mark on Tuesday to a one-week low amid concerns that foreign demand for dollar-denominated assets may weaken, after reports that Chinese regulators urged financial institutions to curb US Treasury holdings to reduce concentration risks and exposure to uncertain US economic policies. Meanwhile, renewed concerns of Feds independence was triggered after Treasury Secretary Scott Bessent last week refused to rule out the possibility of a criminal investigation of Kevin Warsh, President Donald Trumps nominee for Federal Reserve chair, if Warsh ends up refusing to cut interest rates. Federal Reserve Board Governor Stephan Miran said yesterday the Fed should remain fully independent of political influence, before tempering his remarks by noting that complete, 100% independence is impossible. The dollar index that measures the greenback against a basket of currencies is quoting at 96.78. January US employment report and upcoming CPI data due later in the week will be closely watched to understand the timing of potential Federal Reserve easing.

 

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