- The American dollar index remains in its position about 97.00, the lowest level since March 2022.
- Iran’s Foreign Minister Abbas Araghchi refused to resume nuclear conversations with the United States.
- President Trump could announce his favorite candidate to lead the Federal Reserve next year.
The American dollar index (DXY), which measures the value of the US dollar (USD) compared to six main currencies, remains moderate for the seventh consecutive day and is negotiated around 97.30 during the first European hours on Friday, close to the level of 97.00, the lowest level since March 2022, recorded on Thursday. Operators expect the data of the Personal Consumption Expenditure Index (PCE) of the USA.
The dollar remains firm possibly because operators adopt caution, driven by the possible weakening of the feeling of the market. Iran’s Foreign Minister Abbas Araghchi declared that Tehran has no intention of resuming nuclear negotiations with the United States. “No agreement or arrangement has been made to resume negotiations. No promise has been given, nor has this issue been discussed,” Araghchi added according to CNN.
Investors also focus on renewed concerns about the independence of the US Federal Reserve (FED). In The Hague, apart from the NATO Summit on Thursday, the president of the USA, Donald Trump, described the president of the Federal Reserve, Jerome Powell, of “terrible” and shared that he has several potential successors in mind. “I know that within three or four people I am going to choose from.” Trump could weaken Powell’s authority by announcing his favorite candidate to lead the Central Bank next year in September or October.
Meanwhile, Chicago Fed President Austan Goolsbee said that political factors and the appointment of a so -called shadow president do not influence politics. Goolsbee added: “That would have no effect on the FOMC itself.” “Just look at the minutes and transcripts. You can see, word by word, what is the justification for making decisions, and it is not about elections or partisan politics,” he said according to CNBC.
The US dollar faced challenges since the disappointing data of the Gross Domestic Product (GDP) of the US further support moderate expectations around the Federal Reserve Policy Perspective (FED). The report showed a 0.5% contraction in the first quarter, which was worse than the previous estimate and market expectation of -0.2%. However, the impact of the weakest GDP of the US was compensated by the fall in unemployment applications to a minimum of five weeks in 236k and the requests for lasting goods that registered an increase of 16.4%, the highest gain in 11 years.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. The US dollar was the weakest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.09% | -0.09% | -0.06% | -0.05% | -0.14% | -0.04% | |
| EUR | 0.14% | -0.00% | 0.03% | 0.07% | 0.05% | -0.15% | 0.04% | |
| GBP | 0.09% | 0.00% | 0.04% | 0.04% | 0.06% | -0.10% | 0.13% | |
| JPY | 0.09% | -0.03% | -0.04% | 0.03% | 0.03% | -0.23% | 0.11% | |
| CAD | 0.06% | -0.07% | -0.04% | -0.03% | 0.04% | -0.21% | 0.06% | |
| Aud | 0.05% | -0.05% | -0.06% | -0.03% | -0.04% | -0.21% | 0.06% | |
| NZD | 0.14% | 0.15% | 0.10% | 0.23% | 0.21% | 0.21% | 0.27% | |
| CHF | 0.04% | -0.04% | -0.13% | -0.11% | -0.06% | -0.06% | -0.27% |
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.
