The US Dollar is depreciating, falling below 102.5 as President Trump’s tariffs and the escalating trade war weigh on the currency. Disappointment over the lack of progress in trade negotiations, coupled with fears of a potential recession and further interest rate cuts by the Federal Reserve, are contributing to the dollar’s weakness. The currency is experiencing broad-based selling, particularly against the euro, Australian dollar, and Chinese yuan.
- The dollar index depreciated past 102.5.
- President Trump’s tariffs are weighing on the dollar.
- China faces a cumulative 104% levy due to the trade war.
- Markets are worried about a potential US recession.
- The Federal Reserve may cut interest rates further.
- The dollar weakened against the euro, Australian dollar, and Chinese yuan.
The information suggests a bearish outlook for the US Dollar. Factors such as trade war concerns, potential recession, and anticipated monetary policy adjustments from the Federal Reserve are contributing to downward pressure on the currency. The weakness observed against other major currencies indicates broad selling pressure, suggesting further depreciation could be expected.