US Dollar Index steadies following news of positive Trump-Xi summit

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining in the positive territory for the fourth consecutive day and trading around 98.50 during the European hours on Thursday.

The Greenback moves little after Reuters cited White House official, stating that the meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping was “good” and they both discussed ways to enhance economic cooperation.

Both nations discussed expanding market access for American businesses and increasing Chinese investment. They also agreed that the Strait of Hormuz must remain open and that Iran must never acquire a nuclear weapon.

US producer prices rose in April at the fastest pace since 2022, reinforcing expectations that the Federal Reserve could maintain a hawkish policy stance. Markets have eliminated expectations for 2026 Fed rate cuts, now shifting focus toward a potential year-end hike. Focus will shift toward the US Retail Sales report for April due later in the day.

US Producer Price Index (PPI) surged to 6.0% year-over-year in the reported month, up from 4.3% in March and well above the 4.9% expected by the market. On a monthly basis, PPI rose 1.4%, doubling the previous month’s 0.7% and far exceeding the anticipated 0.5% increase.

US Senate confirmed Kevin Warsh as the new Federal Reserve Chair. Investors are currently weighing his appointment against concerns over central bank independence and ongoing political pressure.