Week Ahead: The US Dollar's Upward Adjustment Since Christmas Could Be Nearing Its End

US Dollar Holds Steady Amid G10 Currencies

Last week, the US dollar remained largely stable in comparison to other G10 currencies. Strong economic reports and the market's disregard for recent government efforts to sway Federal Reserve decisions contributed to a slightly stronger tone for the greenback.

Meanwhile, Japanese authorities escalated their verbal warnings in an effort to support the yen. While these statements helped prevent further declines, they did little to spark a meaningful rebound. By the end of the week, the yen had barely moved, despite touching its lowest point since July 2024. The official comments appear to have been enough to ease immediate pressure for further intervention.