January Is Usually a Good Month for the Dollar

January Is Usually a Good Month for the Dollar

The U.S. dollar tempered its gains but was still around its two-year high on Friday morning, building on the case that the currency tends to have a historically strong January.

The greenback against a basket of currencies was down 0.4% on Friday, but holding its ground at $109, the highest value since November 2022.

In January, the dollar has a 63% probability of positive returns, which is the best of any month in the year. The median and average gain in January is also better than all the other months, charts from Renaissance Macro Research show. Any gain this month will build on 2024’s 7.22% rise in the index.