US Dollar Index rises for fourth day as US-China summit eases trade tensions and lifts market access expectations.
The US Dollar Index (DXY) steadied around 98.50 in European trading on Thursday, extending gains for a fourth session. The Greenback found support after a White House official described talks between US President Donald Trump and Chinese leader Xi Jinping as productive, with both sides discussing expanded market access for American businesses and increased Chinese investment.
US producer prices surged 6.0% year-over-year in April, the fastest pace since 2022, exceeding expectations of 4.9%. Monthly PPI rose 1.4%, doubling March’s 0.7% gain. The data reinforced expectations for a hawkish Federal Reserve stance, with markets now pricing out 2026 rate cuts and eyeing a potential year-end hike.
Investors are also assessing the confirmation of Kevin Warsh as Federal Reserve Chair amid concerns over central bank independence. Focus shifts to April’s US Retail Sales report later today.