The dollar edged higher on Friday after a volatile week, underlining the growing uncertainty over what we can expect from the Trump administration.
Overall, the US currency is still up 4% this year against a basket of currencies but it has shed, so far, 1.3% in value in January because of increasing concerns over Trump’s protectionist approach.
Last week Federal Reserve Chair Janet Yellen provided an updated assessment of the economic outlook and repeated why they continued to see a gradual pace of interest rate hikes as appropriate. Markets are still pricing in two 0.25% interest rate hikes for this year.
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