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.
After Moody's downgraded the United States' credit rating, the central bank of the Philippines said it may consider reducing its holdings of US Treasury bonds. This was announced by the regulator's governor Eli Remolona.
Bank of America (BofA) Securities reports that discussions of potential currency agreements have become a key market focus. Meanwhile, US fiscal policy no longer provides the same level of support for the dollar.
According to a spokesman for the European Commission, the European Union's trade chief Maros Sefcovic is planning to hold a telephone conversation with his American counterpart, Jamieson Greer, today.
This month, US business activity and consumer sentiment figure showed growth. The improvement was driven by easing concerns over ongoing trade tensions and tariff-related price pressures in the country.
The US central bank could ease monetary conditions in the second half of 2025 if the Trump administration's tariffs on key trading partners stabilize at around 10%. This point of view was shared by Federal Reserve Governor Christopher Waller
An increase of the indicator value may contribute to the rise in quotes of USD.
The US stock index stabilized on Thursday, May 22nd, after falling during the previous trading session, when Treasury bond yields surged. At that moment, investors' fears that President Donald Trump's tax and spending bill would boost the national debt rose sharply.
According to The Washington Post, House Republicans worked late into the night to advance President Donald Trump’s sweeping tax and immigration bill. Mike Johnson struck a last-minute deal with diverse factions of the US Republican Party, securing enough votes to overcome a procedural hurdle.
Bloomberg reports that investors are worried about President Donald Trump's tax-cut plan. On Wednesday, the yield on 30-year Treasury bonds rose to 5.1%. This, in turn, led to a decline in US stocks and the dollar.
According to Morgan Stanley analysts, the US Fed will keep interest rates in the 4.25–4.50% range for the rest of this year as inflation remains the regulator's key concern. Fed officials left borrowing costs unchanged at the May meeting.
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.