Dollar Strengthens Amid Tariff Threats, Fed Rate Decisions

The U.S. dollar has strengthened against the yen and euro amidst rising concerns over President Trump's tariff threats, particularly targeting imported computer chips and pharmaceuticals. This renewed volatility has left traders anxious, with the dollar index reflecting these shifts ahead of a February 1 tariff deadline. The Federal Reserve is expected to maintain interest rates in the 4.25-4.50% range as it assesses inflation trends, with market experts anticipating a pause in rate adjustments due to ongoing economic uncertainties. Additionally, global markets are bracing for potential turmoil as geopolitical tensions and trade policies create an atmosphere of risk aversion, particularly affecting the technology sector. Investor sentiment is further affected by the performance of major companies like Nvidia, as competition from China's AI startups stirs concerns about future investments in tech. Overall, the interplay between tariff developments, Fed policies, and market reactions suggests a cautious outlook for the coming weeks.