A decrease of the indicator value may contribute to the fall in quotes of USD.
A decrease of the indicator value may contribute to the fall in quotes of USD.
On Monday, both the US dollar and the US stock market dropped amid escalating tariff disputes between America and China. Late last week, Donald Trump announced a possible increase in steel and aluminum import tariffs effective June 4, Reuters notes.
As reported by Bloomberg, the pace of US hiring slowed in May as employers cut costs, households grew more cautious, and businesses adjusted investment strategies amid shifts in trade policy.
Federal Reserve (Fed) Governor Christopher Waller considers more interest rate cuts likely to happen later this year. This forecast is based on expectations of rising unemployment and temporary inflation increase in the country.
Morgan Stanley forecasts the dollar to fall by mid-2026 to the level last seen during the COVID-19 pandemic. The decline will be driven by the Federal Reserve’s rate cuts and slower US economic growth. The US dollar index will lose 9% and hit 91.
An increase of the indicator value may contribute to the rise in quotes of USD.
A decrease of the indicator value may contribute to the fall in quotes of USD.
No change of the indicator value may reduce the volatility of the related markets.
An increase of the indicator value may contribute to the rise in quotes of USD.
A decrease of the indicator value may contribute to the fall in quotes of USD.
A decrease of the indicator value may contribute to the rise in quotes of Silver, Gold and the fall in quotes of USD.
The dollar is the monetary unit of the United States (US). It is also used as the official currency by some other countries (Ecuador, Zimbabwe, El Salvador). The dollar holds a leading position in the world economy.
At the moment, the dollar dominates the system of international settlements with almost 50% share (the euro ranks second with less than 25%). Meanwhile, the dollar's dominance is even more pronounced in the financial sector, on the foreign exchange market, and in the government reserves.
The US currency (USD) quotes, as well as those of its foreign counterparts, depend primarily on the economic and political situation in the issuing country. The US authorities, such as the Federal Reserve System (the Fed) and the Department of the Treasury, influence the dollar exchange rate by changing their monetary, fiscal, budget, and tax policies.
Moreover, the value of the dollar may be significantly affected by the latest news and the international situation. Global economic problems and rising geopolitical tensions have historically been favorable for the US currency, as investors consider it one of the major safe-haven assets, along with gold. In contrast, during periods of strong economic growth and a relatively calm global environment, the demand for the dollar tend to reduce.