US Dollar Weekly Forecast: Sticky Inflation Keeps Higher-for-Longer Alive

The US Dollar index (DXY) experienced a volatile week, ultimately ending slightly higher near the 101.00 mark. Persistent sticky inflation data has kept the narrative of higher-for-longer interest rates alive, supporting the greenback despite mixed market sentiment.

Traders are pricing in prolonged tight monetary policy as inflation remains above target, which could continue to underpin the dollar in the near term. The weekly close around 101.00 suggests indecision, but the broader trend remains supported by rate differentials.