An increase of the indicator value may contribute to the rise in quotes of USD.
An increase of the indicator value may contribute to the rise in quotes of USD.
According to Standard Chartered, the risk of a serious dollar depreciation will rise next year if Trump's policies increase the US debt burden but fail to stimulate the economy.
New York Federal Reserve (Fed) President John Williams is urging his colleagues to take decisive action in response to inflation and inflation expectations deviating from the central bank's targets.
Thomas Barkin, the head of the Federal Reserve Bank (Fed) of Richmond, spoke to Bloomberg Television about why the US economy is slowing down. He pointed out that business leaders have decided to stop new hiring and postpone long-term investment decisions.
Reuters says a significant weakening of the US currency is necessary to narrow or completely eliminate the United States’ trade deficit, which is the main goal of President Donald Trump's economic agenda.
Since Donald Trump's re-inauguration as US president in January 2025, the central bank has been grappling with the uncertain consequences of his ambiguous trade policy. The president’s unpredictable behavior has kept Fed officials on high alert.
According to Bloomberg, US consumer sentiment rose significantly in May from nearly a five-year low, driven by improved economic outlook following the tariff agreement. The Conference Board’s Consumer Confidence Index increased by 12.3 points to 98, marking the largest monthly gain in four years.
A decrease of the indicator value may contribute to the fall in quotes of USD.
News that US tariffs against the EU have been postponed did not provide sufficient support for the dollar. According to ING expert Francesco Pesole, this is due to traders' continued concern over Trump's uncertain trade and tax policies.
According to FXStreet's research, the US Dollar Index is in a bearish trend. The greenback is currently trading below the 100-point psychological level and is potentially heading towards a 2025 low of 97.9 points. Still, there are signs that this decline may slow down.
On Tuesday, the S&P 500 surged by over 1%, extending Monday's gains after US President Donald Trump delayed the imposition of import tariffs on EU goods, Bloomberg reports.
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.