US Dollar Index (DXY) slides to mid-107.00s, fresh monthly low on Trump's tariff remarks
- USD attracts sellers for the second straight day amid bets for additional rate cuts by the Fed.
- Trump says he would rather not impose tariffs on China, triggering a fall in the US bond yields.
- The hawkish BoJ-inspired rally in the JPY contributes to the offered tone surrounding the buck.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, drifts lower for the second straight day and drops to a fresh monthly low during the Asian session on Friday. The index is currently placed around the 107.80 region, down nearly 0.35% for the day, and remains on track to register losses for the second consecutive week.
The markets have been pricing in the possibility that the Federal Reserve (Fed) will lower borrowing costs twice this year in the wake of signs of inflationary pressures in the US. Adding to this, US President Donald Trump, speaking remotely at the World Economic Forum in Davos, said on Thursday that he will apply pressure to bring down interest rates. This, in turn, is seen as a key factor undermining the USD.
Meanwhile, Trump said earlier this Friday that his conversation with Chinese President Xi Jinping was friendly and that he could reach a trade deal with China and would rather not use tariffs. This eases worries that Trump's protectionist policies could boost inflation and supports prospects for further policy easing by the Fed, triggering a modest downtick in the US Treasury bond yields and weighing on the buck.
Furthermore, the Bank of Japan's (BoJ) hawkish rate hike provides a strong boost to the Japanese Yen (JPY) and exerts additional pressure on the buck. Apart from this, a generally positive tone around the equity markets further dents the Greenback's relative safe-haven status and contributes to the intraday slide. Traders now look forward to the release of the flash US PMIs for a fresh impetus later during the US session.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.32% | -0.32% | -0.51% | -0.26% | -0.50% | -0.54% | -0.19% | |
| EUR | 0.32% | -0.01% | -0.19% | 0.06% | -0.18% | -0.22% | 0.12% | |
| GBP | 0.32% | 0.00% | -0.17% | 0.07% | -0.18% | -0.22% | 0.13% | |
| JPY | 0.51% | 0.19% | 0.17% | 0.24% | -0.01% | -0.06% | 0.30% | |
| CAD | 0.26% | -0.06% | -0.07% | -0.24% | -0.25% | -0.28% | 0.07% | |
| AUD | 0.50% | 0.18% | 0.18% | 0.01% | 0.25% | -0.04% | 0.27% | |
| NZD | 0.54% | 0.22% | 0.22% | 0.06% | 0.28% | 0.04% | 0.34% | |
| CHF | 0.19% | -0.12% | -0.13% | -0.30% | -0.07% | -0.27% | -0.34% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
