- The US dollar index can gain ground due to the increase in the demand for safe refuge.
- Trump has warned that “very severe” tariffs will impose to Russia if a peace agreement is not reached in 50 days.
- Trump confirmed that European allies have agreed to buy weapons made in the United States for Ukraine to help counteract Russian attacks.
The American dollar index (DXY), which measures the value of the US dollar (USD) compared to six main currencies, is going down after four days of profits and quoting around 98.10 during the Asian hours on Tuesday. Investors are likely to be waiting for the June consumer price index (CPI) data on Tuesday to obtain a new impulse on the monetary perspective of the Federal Reserve (FED).
The dollar could recover land amid renewed geopolitical concerns, driven by the last threat of US President Donald Trump to impose “very severe” tariffs on Russia if a peace agreement is not reached in 50 days. Trump also warned of tariffs secondary to countries that import Russian oil.
President Trump, together with the NATO secretary, Mark Rutte, confirmed that European allies will buy weapons made in the United States worth bills of dollars, such as Patriot missile systems. These weapons will be transferred to Ukraine in the coming weeks to deal with intensified Russian attacks.
The US government immediately imposed on Monday a 17% tariff to most of the imports of fresh tomatoes in Mexico after negotiations ended without an agreement to avoid the tariff. Trump announced, on Saturday, a 30% tariff to imports from the European Union (EU) and Mexico as of August 1. He also proposed a general tariff rate of 15%-20%to other commercial partners, an increase with respect to the current base rate of 10%.
The president of the Fed of Cleveland, Beth Hammack, described a fundamentally robust economy, despite the fact that inflation persistently exceeds the objective of Fed. Hammack stressed the importance of maintaining restrictive monetary policy. He added that they do not know what the impact of tariffs will be and do not see an imminent need to cut rates.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | 0.00% | -0.01% | -0.03% | 0.03% | -0.01% | -0.20% | |
| EUR | 0.04% | -0.02% | 0.00% | -0.00% | 0.04% | -0.05% | -0.14% | |
| GBP | -0.01% | 0.02% | 0.00% | 0.01% | 0.03% | -0.04% | 0.02% | |
| JPY | 0.01% | 0.00% | 0.00% | -0.04% | 0.06% | -0.05% | -0.10% | |
| CAD | 0.03% | 0.00% | -0.01% | 0.04% | 0.07% | -0.05% | 0.00% | |
| Aud | -0.03% | -0.04% | -0.03% | -0.06% | -0.07% | -0.08% | -0.06% | |
| NZD | 0.01% | 0.05% | 0.04% | 0.05% | 0.05% | 0.08% | 0.06% | |
| CHF | 0.20% | 0.14% | -0.02% | 0.10% | -0.01% | 0.06% | -0.06% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
