- The US dollar index sees a decline as traders react to Trump’s remarks and start preparing trade tariff letters to other nations.
- Trump’s “one big and beautiful” tax proposal includes cuts intended to facilitate House approval and spur economic growth.
- Strong US labor market data has reduced the likelihood of interest rate cuts by the Federal Reserve.
The US Dollar Index (DXY), which gauges the dollar’s value against six major currencies, is trading around 96.90 during Asian trading hours on Friday, having lost ground. The dollar is facing hurdles as it navigates the uncertainties surrounding President Trump’s tariff proposals for various countries.
As reported by Reuters, President Trump indicated on Thursday that he would begin sending letters regarding trade tariffs starting Friday. He plans to address 10 countries at once, suggesting tariff rates that could range from 20% to 30%.
The “one big beautiful” tax bill has cleared the House and is awaiting Trump’s signature. This legislation features notable tax cuts aimed at stimulating economic growth. Trump remarked that the bill represents “a historic victory for American workers, families, and businesses.”
Despite this, the dollar found support due to better-than-expected job growth and declining unemployment, which have eased concerns about potential interest rate cuts from the Federal Reserve.
On Thursday, the Non-Farm Payroll report showed a rise in employment of 147,000 for June, surpassing the anticipated 110,000. Additionally, the unemployment rate dipped from 4.2% to 4.1%. In another positive sign, weekly unemployment claims fell to 233,000 from the prior 237,000, underscoring the resilience of the US labor market.
Today’s US Dollar Price
The table below illustrates how the US dollar (USD) has performed against select currencies. Notably, the dollar is currently weakest against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.09% | -0.38% | -0.06% | 0.21% | 0.09% | -0.30% | |
| EUR | 0.14% | 0.08% | -0.22% | 0.12% | 0.23% | 0.22% | -0.12% | |
| GBP | 0.09% | -0.08% | -0.32% | 0.03% | 0.17% | 0.14% | -0.20% | |
| JPY | 0.38% | 0.22% | 0.32% | 0.35% | 0.46% | 0.40% | -0.01% | |
| CAD | 0.06% | -0.12% | -0.03% | -0.35% | 0.11% | 0.10% | -0.24% | |
| AUD | -0.21% | -0.23% | -0.17% | -0.46% | -0.11% | -0.06% | -0.37% | |
| NZD | -0.09% | -0.22% | -0.14% | -0.40% | -0.10% | 0.06% | -0.34% | |
| CHF | 0.30% | 0.12% | 0.20% | 0.01% | 0.24% | 0.37% | 0.34% |
The heatmap displays the change in value for major currencies. The base currency is selected from the left column, while the estimating currency is selected from the top row. For instance, selecting US dollars from the left column and then moving to Japanese Yen indicates the corresponding change rate displayed in the box.
