- The US dollar index is expected to decline due to increasing prospects for a Federal Reserve rate cut in September.
- The US consumer price index increased by 2.4% year-on-year in May, falling short of the anticipated 2.5% increase.
- Trump announced that the trade deal with China is complete, pending final approval from both presidents.
The US Dollar Index (DXY), which gauges the dollar’s value against six major currencies, has seen consecutive losses, dropping to approximately 98.40 during Thursday’s Asian trading hours. This decline is driven by softer-than-expected inflation data, which has increased the likelihood of a Fed rate reduction in September.
The Consumer Price Index (CPI) in the US rose by 2.4% year-on-year in May, which is slightly above the previous month’s 2.3%, yet it is also 2.5% less than market expectations. The core CPI, excluding the more volatile food and energy prices, reached a year-on-year increase of 2.8% in May, compared to a 2.9% consensus forecast.
In a post on social media, President Trump stated on Wednesday that the trade agreement with China has been finalized, pending final confirmation from himself and Chinese President Xi Jinping. He mentioned, “We are getting a total of 55% tariffs. China has only earned 10%. The relationship is great! Thanks for focusing on this!” Trump expressed a willingness to extend the trade negotiation deadline, but he doesn’t find it necessary. He anticipates announcing unilateral tariffs in about two weeks.
According to a report from the Wall Street Journal, China plans to issue rare earth export licenses to US manufacturers but will limit these to six months to retain control over vital minerals in future negotiations.
The US dollar might witness a surge as a safe-haven response to rising tensions in the Middle East. The US has advised certain citizens to exit the area. President Trump reiterated on Wednesday that the US will not permit Iran to acquire nuclear weapons, as per a Reuters report. Additionally, CBS News’ Jennifer Jacobs noted that US officials are reportedly prepared to initiate comprehensive operations in Iran.
Today’s US Dollar Price
The following table illustrates the changes in the US dollar (USD) compared to various currencies today. The dollar was weakest against the Swiss franc.
| 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 heatmap illustrates how major currencies have changed. By selecting a base currency from the left column and an estimated currency from the top row, you can see the corresponding rate of change.
