The buzz is all about US tariff threats but the what’s really impacting currencies is the moves by Central Banks to cut or maintain interest rates.

Granted, tariffs are having an impact, especially on emerging market currencies. 

However bigger picture is that rate cuts tend to drive investors towards alternative currencies with higher rates.

That’s been a big factor in supporting a strong US dollar.  It’s the Fed’s reluctance to cut rates.  This has been the case since 2024 – before tariffs were on the table.