The dollar index is quoting firmly well above 108 mark at the start of the New Year 2025 as Federal Reserve stance turns cautious regarding rate cuts in the year to come. US benchmark treasury yields are holding at 4.5% and the dollar index that measures the greenback against a basket of currencies are quoting at 108.28, up 0.32% on the day. In 2024, the DXY added close to 7% annual gain. Indications of slower pace of rate cuts this year coupled with election of Donald Trump as the new president boosted the dollar as his policies of looser regulation, tax cuts, tariff hikes and tighter immigration are seen as both pro-growth and inflationary. US economic data, global growth, geo-political developments, central bank actions, Trump policies are all likely to provide onward direction for greenback in the year to come.
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