Suspected Japanese intervention and US readiness to act pressure the USD, pushing the DXY to a six-week low near 99.96.
The US Dollar Index (DXY) retreated below 100 on Friday, trading at 99.96 after peaking at 100.45 earlier in the session. The decline follows suspected Japanese intervention to support the Yen, with reports indicating large-scale USD-selling and JPY-buying during US trading hours.
The DXY is set to close July in negative territory, extending losses after the Federal Reserve held interest rates at 3.50%-3.75% on Wednesday. Analysts suggest the USD rally has stalled, with the index likely retreating into a 96-100 range amid concerns the Fed may lag in addressing inflation.
Reuters reported the US Treasury advised banks to prepare for potential intervention in the Yen market, adding to pressure on the Greenback. The Fed’s shift toward limited forward guidance further weakened USD sentiment.