Dollar Rally Pauses
$DXY (Dollar Index)
Jun 25, 2026,
DXY−0.17%
The dollar index traded around 101.6 on Thursday, pausing its recent rally after climbing to its highest level since early 2025 previously session.
Investors assess a fresh batch of US economic data alongside the ongoing decline in oil prices, which have now returned to pre-conflict levels, and their implications for the Fed’s monetary policy outlook.
The latest US PCE inflation report came in broadly in line with expectations.
While inflation remains well above the Fed’s 2% target, the data helped ease concerns about a sharper-than-expected acceleration in price pressures.
At the same time, first-quarter GDP growth was revised higher and personal spending accelerated in May, suggesting consumer demand remains resilient.
Meanwhile, traders slightly scaled back expectations for Fed tightening, although markets continue to price in at least one rate hike this year.
The probability of a Fed rate increase in September fell to 63%, down from 68% the previous day.
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