Dollar weakens amid Trump's tax bill setbacks and G7 talks

On Wednesday, May 21, the US dollar fell against major currencies as President Donald Trump failed to convince Republicans to support his tax bill. 

Nonpartisan analysts estimate that the draft would increase the country's financial burden by $3 trillion to $5 trillion. The projected surge in fiscal debt, coupled with mounting trade tensions and waning confidence, has already exerted downward pressure on American assets.

Market participants are also concerned that US officials may deliberately weaken the greenback at the upcoming G7 meeting. 

Experts from the Commonwealth Bank of Australia predict the dollar to keep falling in 2026, driven by the resolution of tariff uncertainties and anticipated interest rate cuts by the Federal Reserve.

Although Moody's downgrade of the US credit rating on Friday did not have a significant immediate impact on the markets, it did reduce confidence in American assets as safe havens.

The greenback fell 0.35% to 144.025 yen. Meanwhile, the euro has risen 0.42% to $1.1328, and the British pound has added 0.13% to $1.3405.