- The US dollar index depreciates in the midst of the growing probabilities of a Fed fees cut in September.
- The US Consumer Price Index rose 2.4% year -on -year in May, below the expected increase of 2.5%.
- Trump said the commercial agreement with China is completed, but remains subject to the final approval of both leaders.
The 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 98.40 during the Asian hours of Thursday. The dollar faces challenges since inflation in the US was lower than expected, which has increased the probabilities of a Fed rates cut in September.
The US Consumer Price Index (CPI) rose 2.4% year -on -year in May, slightly above the previous 2.3%, but below the market expectations of a 2.5% increase. The underlying IPC, which excludes volatile food and energy prices, rose 2.8% year -on -year in May, compared to the 2.9% consensus.
The president of the USA, Donald Trump, published in Truth Social on Wednesday, saying that the commercial agreement with China is made and added that it is subject to its final approval and that of Chinese President Xi Jinping. Trump also said that “we are obtaining a total of 55%tariffs, China is getting 10%. The relationship is excellent! Thank you for your attention to this matter!” He also said he is willing to extend the term of trade negotiations, but does not believe it is necessary. In addition, he said he will establish unilateral tariff rates within two weeks.
China will grant rare earth export licenses to American manufacturers and motorists, but only for six months to maintain control over critical minerals such as lever in future negotiations, according to the Wall Street Journal (with restricted access).
The US dollar could gain ground for safe refuge flows amid the growing tensions in the Middle East. United States (USA) advised some Americans to leave the region. President Trump said Wednesday that the US will not allow Iran to have a nuclear weapon, according to Reuters. In addition, the senior correspondent of the White House of CBS News, Jennifer Jacobs, reported that US officials have been told that Israel is completely ready to launch an operation in Iran.
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 | -0.24% | -0.23% | -0.43% | -0.01% | 0.20% | 0.10% | -0.45% | |
| EUR | 0.24% | 0.02% | -0.22% | 0.23% | 0.42% | 0.35% | -0.18% | |
| GBP | 0.23% | -0.02% | -0.23% | 0.21% | 0.39% | 0.31% | -0.23% | |
| JPY | 0.43% | 0.22% | 0.23% | 0.43% | 0.62% | 0.49% | -0.00% | |
| CAD | 0.00% | -0.23% | -0.21% | -0.43% | 0.21% | 0.09% | -0.44% | |
| Aud | -0.20% | -0.42% | -0.39% | -0.62% | -0.21% | -0.08% | -0.61% | |
| NZD | -0.10% | -0.35% | -0.31% | -0.49% | -0.09% | 0.08% | -0.54% | |
| CHF | 0.45% | 0.18% | 0.23% | 0.00% | 0.44% | 0.61% | 0.54% |
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.
