The dollar index was steady around 108.2 on Thursday after facing pressure earlier in the week, as investors awaited more clarity on President Donald Trump's policy plans. The index is down about 1% so far this week, following Trump's decision not to implement tariffs that have raised concerns about potential inflationary pressures.

However, he has issued tariff threats against China, Mexico, Canada and the European Union in recent remarks. Investors are also focused on next week's Federal Reserve monetary policy meeting. The central bank is widely expected to keep interest rates unchanged in January, with markets betting on a rate cut in July, and possibly another cut later in the year. Meanwhile, the Bank of Japan is expected to raise interest rates on Friday, and the European Central Bank is likely to cut rates again next week. (AL)

Source: Trading Economics