- The American dollar index descends while Fed officials highlight a fall in both business and consumer confidence.
- The president of the Fed of Atlanta, Bostic, warned that the inconsistent and changing tariff policies of the Trump administration run the risk of interrupting US commercial logistics.
- The US dollar has extended its losses since Moody’s degraded the US credit rating of AAA to AA1.
The American dollar index (DXY), which tracks the US dollar (USD) compared to a basket of six main currencies, is extending its losses for third consecutive session and is quoted downward around 99.70 during the Asian hours on Wednesday. The dollar depreciates, pressed by the caution comments of Federal Reserve officials (FED) on economic perspectives and business feeling.
The president of the Fed of San Francisco, Mary C. Daly, and the president of Cleveland’s Fed, Beth Hammack, expressed increasing concerns about the US economy. Although key economic indicators remain robust, both officials pointed out the deterioration of business and consumer confidence, attributing part of the change of feeling to US commercial policy.
Meanwhile, no Fed official agreed to relieve hardening amid an economic deceleration in the United States (USA). On Monday, the president of the Atlanta Fed, Raphael Bostic, said it favors a cut in 2025. BOSTIC also warned that inconsistent and changing tariff policies introduced during the Trump administration are at risk of interrupting US commercial logistics, which depends largely on large -scale imports to meet domestic demand.
The US dollar continues to fight since Moody’s announced its degradation of the US credit rating of AAA to AA1. This movement follows similar degradations by Fitch Ratings in 2023 and Standard & Poor’s in 2011.
Moody’s also predicts that US federal debt will increase to around 134% of GDP by 2035, from 98% in 2023, with the budget deficit that is expected to increase almost 9% of GDP. This deterioration is attributed to the increase in debt service costs, the expansion of rights programs and the fall in tax revenues.
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 | -0.33% | -0.24% | -0.39% | -0.14% | -0.35% | -0.27% | -0.58% | |
| EUR | 0.33% | 0.09% | -0.10% | 0.17% | 0.00% | 0.06% | -0.25% | |
| GBP | 0.24% | -0.09% | -0.15% | 0.10% | -0.07% | -0.02% | -0.36% | |
| JPY | 0.39% | 0.10% | 0.15% | 0.25% | 0.06% | 0.12% | -0.18% | |
| CAD | 0.14% | -0.17% | -0.10% | -0.25% | -0.20% | -0.12% | -0.46% | |
| Aud | 0.35% | -0.01% | 0.07% | -0.06% | 0.20% | 0.06% | -0.25% | |
| NZD | 0.27% | -0.06% | 0.02% | -0.12% | 0.12% | -0.06% | -0.32% | |
| CHF | 0.58% | 0.25% | 0.36% | 0.18% | 0.46% | 0.25% | 0.32% |
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.
