- The US dollar index depreciates, possibly driven by technical correction.
- The dollar could recover land due to the possible threat of the direct participation of the US in the conflicts of the Middle East.
- The president of the FED, Powell, warned that the continuous political uncertainty will keep the central bank waiting.
The US dollar index (DXY), which measures the value of the US dollar (USD) compared to six main currencies, is extending its losses for the second consecutive day and quoting down around 98.70 at the time of writing. Operators will probably evaluate the FED monetary policy report, scheduled for publication on Friday. The Federal Reserve Board will present reports to Congress containing discussions about “the conduct of monetary policy and economic developments and perspectives for the future.”
The US dollar could recover its land due to a greater demand for safe refuge, driven by the growing concerns about the possible participation of the US in the Air War between Israel and Iran. The US intelligence agencies believe that Iran has not yet decided whether it will make a nuclear weapon, although it has developed a large enriched uranium stockpile necessary to make a bomb, US sources of intelligence said US intelligence to The New York Times.
However, the report also indicates that Iran could change towards the production of a bomb if the US Army attacked the uranium enrichment site of Iran in Fordo, or if Israel kill the supreme leader of Iran, Ayatolá Khamenei. The president of the US Senate Intelligence Committee said that President Trump will give Iran the last chance to reach an agreement that ends his nuclear program. Trump will probably delay his final decision on the launch of attacks for up to two weeks.
The dollar received support from the caution comments of the president of the Federal Reserve (FED), Jerome Powell, at a press conference after the meeting on Wednesday. Powell said inflation remains something above the target and could increase in the future. He stressed the importance of the current political position that leaves the Central Bank well positioned. He warned that continuous political uncertainty will keep Fed in a position of keeping the fees.
The US Federal Reserve (Fed) announced that it would maintain the interest rate without changes in 4.5% in June, as expected widely. However, the Federal Open Market Committee (FOMC) still foresees around 50 basic points of cuts in interest rates until the end of 2025.
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 euro.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.18% | -0.09% | -0.16% | -0.11% | -0.16% | 0.03% | 0.01% | |
| EUR | 0.18% | 0.06% | 0.03% | 0.08% | 0.18% | 0.23% | 0.21% | |
| GBP | 0.09% | -0.06% | 0.04% | 0.02% | 0.13% | 0.17% | 0.15% | |
| JPY | 0.16% | -0.03% | -0.04% | 0.11% | -0.01% | 0.05% | 0.12% | |
| CAD | 0.11% | -0.08% | -0.02% | -0.11% | -0.02% | -0.09% | 0.13% | |
| Aud | 0.16% | -0.18% | -0.13% | 0.01% | 0.02% | 0.32% | 0.02% | |
| NZD | -0.03% | -0.23% | -0.17% | -0.05% | 0.09% | -0.32% | -0.02% | |
| CHF | -0.01% | -0.21% | -0.15% | -0.12% | -0.13% | -0.02% | 0.02% |
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.
