- The US index is facing challenges as worries about increasing debt rise in the US.
- The House is advancing Trump’s “one big beautiful bill” for Senate consideration.
- The US 30-year bond yield experienced a dip after reaching 5.15% on Thursday, marking its highest level in 19 months.
The US Dollar Index (DXY), which measures the US dollar against a set of six major currencies, has slipped to a two-week low. Currently, it’s trading at around 99.60, while the yield is at 5.05%, the highest since November 2023, following a pullback from that 5.15% peak.
The decline in the US dollar stems from rising concerns about the growing budget deficit. Yet, Trump’s “one big beautiful bill” is making its way to the Senate. The House of Representatives narrowly approved the budget on Thursday with a vote of 215-214. The Congressional Budget Office (CBO) anticipates that this proposal could increase the deficit by $3.8 billion.
Interestingly, the dollar gained some support after the release of the robust US S&P Global Purchasing Managers’ Index (PMI) data. The S&P Global Composite PMI saw an increase to 52.1 in May from a previous 50.6. Additionally, the manufacturing PMI rose from 50.2 to 52.3, with the service PMI increasing from 50.8 to 52.3.
On Thursday, Governor Christopher Waller remarked that the market is keeping a close eye on fiscal policies. He added that if tariffs hover around 10%, it bodes well for the economy in the second half of the year, suggesting that the Fed could consider lowering interest rates later on. The CME FedWatch tool indicates the market is pricing in nearly a 71% chance of this. It seems that stabilizing interest rates during the upcoming June and July meetings may be the focus for now.
Today’s US Dollar Price
The table below illustrates how the US dollar (USD) has changed against various currencies today. Notably, the US dollar is the weakest compared to the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.38% | -0.30% | -0.42% | -0.22% | -0.39% | -0.35% | -0.34% | |
| EUR | 0.38% | 0.09% | -0.05% | 0.17% | -0.01% | 0.05% | 0.06% | |
| GBP | 0.30% | -0.09% | -0.12% | 0.08% | -0.06% | -0.04% | -0.03% | |
| JPY | 0.42% | 0.05% | 0.12% | 0.21% | 0.02% | 0.07% | 0.08% | |
| CAD | 0.22% | -0.17% | -0.08% | -0.21% | -0.20% | -0.12% | -0.11% | |
| AUD | 0.39% | 0.00% | 0.06% | -0.02% | 0.20% | 0.06% | 0.06% | |
| NZD | 0.35% | -0.05% | 0.04% | -0.07% | 0.12% | -0.06% | 0.00% | |
| CHF | 0.34% | -0.06% | 0.03% | -0.08% | 0.11% | -0.06% | -0.01% |
The heatmap displays how major currencies are fluctuating against each other. The base currency is on the left, with the estimated currency along the top. For instance, if USD is chosen from the left and JPY from the top, the box shows the change rate for USD/JPY.
