- The American dollar index is quietly quoted around 97.40 after Trump’s last tariff attack.
- Until now, Trump has announced new tariff rates for 21 nations.
- The Fed Waller is expected to argue in favor of reducing interest rates in the monetary policy meeting at the end of this month.
The US dollar (USD) remains widely stable during Thursday’s European negotiation hours, while the president of the United States (USA), Trump, announces the last attack of tariffs.
At the time of writing, the American dollar index (DXY), which follows the value of the dollar against six main currencies, quietly quotes near the maximum of two weeks around 97.80.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.12% | -0.22% | -0.06% | -0.16% | -0.40% | -0.29% | 0.03% | |
| EUR | 0.12% | -0.11% | 0.05% | -0.00% | -0.25% | -0.17% | 0.14% | |
| GBP | 0.22% | 0.11% | 0.14% | 0.08% | -0.14% | -0.06% | 0.24% | |
| JPY | 0.06% | -0.05% | -0.14% | -0.09% | -0.32% | -0.17% | -0.01% | |
| CAD | 0.16% | 0.00% | -0.08% | 0.09% | -0.20% | -0.16% | 0.16% | |
| Aud | 0.40% | 0.25% | 0.14% | 0.32% | 0.20% | 0.04% | 0.38% | |
| NZD | 0.29% | 0.17% | 0.06% | 0.17% | 0.16% | -0.04% | 0.31% | |
| CHF | -0.03% | -0.14% | -0.24% | 0.01% | -0.16% | -0.38% | -0.31% |
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).
On Wednesday, US president, Trump revealed new reciprocal tariff rates for seven nations that have failed to reach a commercial agreement during the 90 -day tariff pause. Trump also sent letters to 14 nations during the weekend, specifying new tariff rates, being Japan and South Korea outstanding names, which are main commercial partners of Washington.
Meanwhile, investors seek the current status of trade negotiations between the US and their main commercial partners, such as the Eurozone, Canada and Mexico.
Another reason behind the stabilization of the US dollar is the message of the minutes of the Federal Open Market Committee (FOMC) of the Monetary Policy Meeting of June 17-18, where most members argued against adjustments in the monetary policy in the short term. A greater number of Federal Reserve officials (FED) anticipated cuts in interest rates later this year only if they see that tariff -driven inflation is “modest or temporary.”
In today’s session, investors will focus on the comments of several Fed officials, such as Governor Christopher Waller, Mary Daly and Alberto Musalem.
At the end of June, the Fed Waller supported cuts in interest rates at the July monetary policy meeting, citing growing risks for the labor market. “The Fed should not wait for the collapse labor market to cut rates,” Waller said.
US Dollar – Frequently Questions
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
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.
