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An increase of the indicator value may contribute to the rise in quotes of USD.

2 February
US-China trade truce not to prevent slowdown in US economic growth — Bloomberg

On Monday, the United States and China reached a temporary trade truce. According to a Bloomberg survey of analysts, such a decision will not prevent a slowdown in US economic growth, though it will reduce the risk of a full-scale recession.

13 May 2025
US-China trade truce not to prevent slowdown in US economic growth — Bloomberg
Adriana Kugler from Fed considers tariffs as threat for US economy despite easing relations with China

According to statements by Federal Reserve (Fed) official Adriana Kugler, US President Donald Trump's tariff policy will increase inflation and negatively affect the country's economic growth. It will happen despite the recent reduction of duties against China.

13 May 2025
Adriana Kugler from Fed considers tariffs as threat for US economy despite easing relations with China
Traders now expect only two Fed rate cuts by year-end – Bloomberg

According to Bloomberg, swap traders have lowered expectations for interest rate cuts by the US Federal Reserve (Fed) for the rest of this year. They now project the Fed to make just two steps in reducing borrowing costs in 2025.

13 May 2025
Traders now expect only two Fed rate cuts by year-end – Bloomberg
American stocks stabilize following Wall Street gains on US-China trade deal

American stock indexes rose and stabilized on the evening of May 12 following the announcement of a US-China trade deal. Traders' attention will now shift to upcoming key Consumer Price Index (CPI) data.

13 May 2025
American stocks stabilize following Wall Street gains on US-China trade deal
Bloomberg forecasts US inflation to rise in April amid the impact of Trump’s tariff hikes

US inflation likely accelerated in April following a March slowdown, as higher tariffs on Chinese goods began pushing up prices. According to Bloomberg’s median economist forecast, the Consumer Price Index (CPI) rose 0.3% month-over-month.

13 May 2025
Bloomberg forecasts US inflation to rise in April amid the impact of Trump’s tariff hikes
Dollar strengthens as US and China reach trade agreement

On Tuesday, the dollar gained significant strength after China and the US agreed to a 90-day rollback of import tariffs they had imposed on each other. According to Reuters, the news triggered a relief rally in the markets.

13 May 2025
Dollar strengthens as US and China reach trade agreement
United States. Federal Budget Balance. The value of the indicator has increased from $-161B to $258B

An increase of the indicator value may contribute to the rise in quotes of USD.

12 May 2025
US and China agree on significant 90-day reciprocal tariff cuts

On Monday, May 12, the United States and China announced an agreement to temporarily reduce mutual tariffs. The world's two largest economies are seeking to end a trade confrontation that has weighed on global economic prospects and put financial markets under severe pressure.

12 May 2025
US and China agree on significant 90-day reciprocal tariff cuts
American stocks rise as US and China make progress in trade talks

American stocks and the dollar rallied after China and the US reported major breakthroughs in two-day talks over the weekend aimed at easing trade tensions between the two countries.

12 May 2025
American stocks rise as US and China make progress in trade talks
More Fed officials highlight risks of Trump's tariff policy to US economy — Yahoo Finance

Federal Reserve Governor Michael Barr and New York Fed President John Williams both warned late last week that Trump's policies are negatively impacting the nation's economy. More US officials stated this point recently, Yahoo Finance reports.

12 May 2025
More Fed officials highlight risks of Trump's tariff policy to US economy — Yahoo Finance

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.