The US Dollar showed strength against all G10 currencies following President Trump's nomination of Kevin Warsh as the next Fed Chair. This nomination is perceived as a move that may enhance central bank independence and ease concerns over the Dollar's depreciation. The US Dollar index (DXY) ended higher, reflecting this bullish sentiment. UOB Group's analysis indicates a complex interplay of factors influencing the Dollar's performance.

US Dollar performance analysis

"The US dollar was stronger against all G10 currencies on Fri (30 Jan). The dollar outperformance came on the back of US President Trump announcement that he is nominating former Fed Governor Kevin Warsh as his next Fed Chair pick."

"Bloomberg intelligence opined that a Warsh-led Federal Reserve may temporarily cool the greenback-debasement trade by easing concerns over central bank independence."

"The US Dollar index (DXY) ended higher by +0.74% to 96.991 (from the previous session’s close of 96.283). However, for the week, the DXY was down by -0.62%, and for the month, it was down by -1.35%."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)