Dollar News (USD)

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A decrease of the indicator value may contribute to the fall in quotes of USD.

7 July
Goldman Sachs analyst sees increase in currency hedging accelerate dollar’s decline

According to Richard Chambers from Goldman Sachs, the dollar might continue its decline as currency hedging ratios rise, driven by foreign investors hedging against volatility.

25 June 2025
Goldman Sachs analyst sees increase in currency hedging accelerate dollar’s decline
United States. Current Account. The value of the indicator has decreased from -312B to -450.2B

A decrease of the indicator value may contribute to the fall in quotes of USD.

24 June 2025
Donald Trump criticises Fed’s chairman Jerome Powell’s actions and insists on rate cut

Today, US President Donald Trump declared the necessity of reducing interest rates by 2-3%. He also continued making critical comments toward Federal Reserve System (Fed) Chairman Jerome Powell. Last week, the US Fed maintained rates at the current level of 4.5%.

24 June 2025
Donald Trump criticises Fed’s chairman Jerome Powell’s actions and insists on rate cut
Central banks plan to boost gold reserves as dollar dominance wanes — OMFIF survey

A survey by the Official Monetary and Financial Institutions Forum (OMFIF) found that one in three central banks plan to cut their dependence on the dollar and ramp up gold holdings over the next year or two.

24 June 2025
Central banks plan to boost gold reserves as dollar dominance wanes — OMFIF survey
Dollar falls as investor sentiment improves and Fed signals rate cut

The US dollar weakened against most major currencies after President Donald Trump announced an agreement to help stabilize the Middle East. This also boosted investor appetite for riskier assets.

24 June 2025
Dollar falls as investor sentiment improves and Fed signals rate cut
Foreign investors cut dollar asset holdings — Reuters

Reuters analysts note that global investors appear to be gradually reducing their dollar-denominated asset holdings. This trend has driven the US currency to its weakest level against a basket of major currencies in 3 and a half years.

24 June 2025
Foreign investors cut dollar asset holdings — Reuters
Fed’s Michelle Bowman insists on interest rate cut in July

On Monday, Federal Reserve (Fed) official Michelle Bowman stated the need to lower interest rates during the regulator's July meeting. As Associated Press notes, the lack of unity among Fed representatives regarding rates has drawn criticism from the White House.

24 June 2025
Fed’s Michelle Bowman insists on interest rate cut in July
US manufacturing increases simultaneously with inflation strengthening

According to Bloomberg, in June, US manufacturing demonstrated stable growth. Partially it was caused by employment growth while two key inflation figures accelerated to its peaks from July 2022. Meanwhile, the index of input costs surged 5.4 points to 70, marking the biggest jump in four years.

24 June 2025
US manufacturing increases simultaneously with inflation strengthening
US Fed Chair Jerome Powell to defend current monetary policy before Congress

As reported by Bloomberg, Federal Reserve Chair Jerome Powell is set to testify twice this week before US lawmakers. He’s expected to defend the central bank’s decision to hold interest rates steady at least until September.

24 June 2025
US Fed Chair Jerome Powell to defend current monetary policy before Congress
United States. Manufacturing PMI. The value of the indicator remained at the same level of 52

No change of the indicator value may reduce the volatility of the related markets.

23 June 2025

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.