- The US Dollar Index is benefiting from reduced trade tensions with China.
- The US consumer price index may rise by 2.5% year-on-year in May.
- The US Court of Appeals has prolonged its temporary stay, allowing the government to maintain its significant tariffs imposed by Trump.
The US Dollar Index (DXY), which gauges the USD’s value against six leading currencies, has seen gains for the second consecutive day, hovering around 99.10 during the Asian trading hours on Wednesday. The Consumer Price Index (CPI) for the US is anticipated to increase by 2.5% when compared year-on-year this May.
The support for the US dollar stems from easing trade Frictions with China. Secretary of Commerce Howard Lutnick mentioned a possible resolution with China, revealing that a framework for the Geneva consensus has been agreed upon. China’s Deputy Commerce Minister Li Chenggang characterized the ongoing communication with the US as reasonable and transparent, although he noted that he must present the framework to Chinese leadership first. Interestingly, as reported by Bloomberg, both teams will need to secure approval from their respective leaders before any implementation.
Meanwhile, US Treasury yields are holding steady as traders prepare for upcoming inflation data. The CPI report is expected to shed light on the economic effects of recent tariffs and overall inflationary trends. As of now, the yields on two- and ten-year US Treasuries are at 4.01% and 4.46%, respectively.
On Tuesday, the U.S. Federal Circuit Court of Appeals reaffirmed its temporary stay, which permits the government to uphold President Trump’s extensive tariffs and contest last month’s lower court ruling that halted them.
Today’s US Dollar Price
The table below illustrates how the US dollar (USD) is faring against various currencies today, with the USD showing the strongest performance against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.14% | 0.07% | 0.05% | 0.14% | 0.33% | 0.02% | |
| EUR | -0.08% | 0.05% | 0.02% | -0.04% | 0.05% | 0.19% | -0.07% | |
| GBP | -0.14% | -0.05% | -0.06% | -0.06% | 0.02% | 0.16% | -0.13% | |
| JPY | -0.07% | -0.02% | 0.06% | -0.14% | 0.06% | 0.22% | -0.10% | |
| CAD | -0.05% | 0.04% | 0.06% | 0.14% | 0.11% | 0.24% | -0.07% | |
| AUD | -0.14% | -0.05% | -0.02% | -0.06% | -0.11% | 0.15% | -0.14% | |
| NZD | -0.33% | -0.19% | -0.16% | -0.22% | -0.24% | -0.15% | -0.29% | |
| CHF | -0.02% | 0.07% | 0.13% | 0.10% | 0.07% | 0.14% | 0.29% |
The heatmap displays the fluctuation rates of major currencies against one another. You can select a base currency from the left column and an estimated currency from the top row. For instance, if you choose US dollars from the left and move to the right to Japanese Yen, the change rate indicated represents the USD (base)/JPY (quote).
