Dollar Hits Near 4-Year Low Ahead of Fed Decision as Yen Intervention Fears Mount

The U.S. dollar fell to its lowest level in nearly four years on Tuesday, January 27, 2026, as investors awaited the Federal Reserve's upcoming policy decision and monitored potential intervention in currency markets. The dollar index (DXY) dropped 0.9% to 96.20, extending a recent selloff driven by Fed policy uncertainty and geopolitical concerns. Markets expect the Fed to hold rates steady amid resilient economic growth and low unemployment, though policy uncertainty from Washington has pressured the dollar. The yen remained volatile amid speculation of joint U.S.-Japan intervention after the New York Fed conducted rate checks. The euro strengthened, rising 1.4% to $1.2049, its highest since June 2021, as investors continued shifting away from dollar assets.