Jan 24, 202502:25 GMT

DXY−0.15%

The dollar index dipped below 108 on Friday, poised to decline by over 1% for the week.

This drop comes as President Donald Trump has refrained from implementing aggressive tariffs following his inauguration, contrary to market expectations.

In his speech at the World Economic Forum, Trump also called for an immediate reduction in interest rates and reiterated his commitment to low taxes for US-based manufacturers, while promising tariffs on companies that produce abroad.

Despite Trump’s comments, the Federal Reserve is widely expected to keep interest rates unchanged at next week’s policy meeting.

Market expectations now lean toward a rate cut in July, with another potential reduction later in the year.

The dollar weakened broadly, with the most significant selling pressure observed against the antipodean currencies.