- The American dollar index is under pressure in persistent uncertainties related to trade.
- There is a growing speculation that Washington could be bowing towards a weaker dollar to advance its commercial objectives.
- The improved global commercial feeling has reduced concerns about a recession, leading markets to reduce the expectations of fed features.
The US dollar index (DXY), which tracks the US dollar (USD) compared to a basket of six main currencies, is quoting down around 100.90 during Thursday’s Asian session. The dollar is still under pressure while investors evaluate the current commercial uncertainties, despite a recent decrease in tensions.
Speculation is growing that Washington can be favoring a weaker dollar to support its commercial agenda. The Trump administration has argued that a strong dollar, compared to weaker regional currencies, has put American exporters at a disadvantage.
The improved global commercial feeling has relieved the fears of recession, which has led markets to reduce expectations for federal reserve rates (Fed). LSEG data shows a 74% probability of a 25 basic points cut in September, below the previous bets on a cut in July, , offering some support to the US dollar.
In the Geopolitical Front, the upper Iranian official Ali Shamkhani said Wednesday that Iran is willing to sign a nuclear agreement with President Trump. NBC reports that the proposal includes Iran’s commitment to never develop nuclear weapons in exchange for the immediate uprising of all US sanctions.
Meanwhile, inflation in the US continues to cool. The April Consumer Price Index (CPI) rose 2.3% year -on -year, slightly below 2.4% in March and market forecasts, marking a minimum of three years for annual general inflation. However, this could be the last strong data of the CPI for a while, since the next Trump administration tariffs on key commercial partners are scheduled to enter into force in May.
The recent rebound of the US dollar, driven by the hopes of relief of tariffs between the US and China, is losing strength as the operators focus again on the broader implications of the US commercial policy. The attention is now addressed to the next retail sales and US production price index (IPP) of the USA, which will be published later on Thursday.
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 | -0.16% | -0.11% | -0.31% | -0.10% | -0.17% | -0.13% | -0.31% | |
| EUR | 0.16% | 0.04% | -0.16% | 0.06% | -0.02% | 0.04% | -0.16% | |
| GBP | 0.11% | -0.04% | -0.19% | 0.01% | -0.07% | 0.02% | -0.17% | |
| JPY | 0.31% | 0.16% | 0.19% | 0.21% | 0.14% | 0.18% | 0.01% | |
| CAD | 0.10% | -0.06% | -0.01% | -0.21% | -0.06% | -0.01% | -0.18% | |
| Aud | 0.17% | 0.02% | 0.07% | -0.14% | 0.06% | 0.06% | -0.09% | |
| NZD | 0.13% | -0.04% | -0.02% | -0.18% | 0.00% | -0.06% | -0.16% | |
| CHF | 0.31% | 0.16% | 0.17% | -0.01% | 0.18% | 0.09% | 0.16% |
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.
