U.S. Dollar Faces Continued Pressure Amid Rate Cut Expectations
UNITED STATES, JUL 2 – The dollar has fallen nearly 11% in 2025 due to tariff renewals, rising national debt, and speculation of Federal Reserve interest rate cuts amid fiscal and trade concerns.
- On the second of April, the U.S. government under President Trump announced broad tariffs on imports from the majority of countries, describing the action as "Liberation Day."
- The tariffs followed rising concerns over US debt and erratic policies amid a 90-day tariff pause set to expire on July 9.
- The US dollar index fell 10.8% from January to June, its worst first-half decline since 1973, hitting a three-year low versus major currencies.
- A Reuters poll showed over 80% of FX analysts expect the dollar to weaken further, driven mainly by ongoing 'tariff negotiations'.
- This dollar weakness has prompted investors and central banks to reassess US assets, while higher import costs sustain inflation pressures.
15 Articles
15 Articles
U.S. Dollar Faces Continued Pressure Amid Rate Cut Expectations
The U.S. dollar is near a 3.5-year low against the euro and sterling as expectations grow for U.S. rate cuts. President Trump's tariff deadlines and the potential for a new dovish Federal Reserve chair contribute to this pressure, impacting global currency markets, including emerging market currencies.
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