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US Dollar Index falls toward 99.50 as Trump’s One Big Beautiful Act clears first hurdle

  • The US Dollar Index struggles as traders adopt caution due to growing debt concerns in the United States.
  • The House of Representatives has advanced Trump's “One Big Beautiful Bill” to the Senate floor.
  • US 30-year bond yield retreated after hitting 5.15% on Thursday, the highest in 19 months.

The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, depreciates toward two-week lows. At the time of writing, the DXY is trading around 99.60, remains under pressure as the 30-year yield on US Treasury bond is trading lower at 5.05% after pulling back from 5.15%, reached in the previous session, its highest level since November 2023.

The US Dollar stepped down due to growing concerns regarding the increase in the fiscal deficit in the United States (US), while Trump's “One Big Beautiful Bill” is on its way to the Senate floor. The US House of Representatives approved Trump’s budget by a single vote of 215-214 on Thursday, which would deliver tax breaks on tip income and US-manufactured car loans. The proposal is expected to increase the deficit by $3.8 billion, according to the Congressional Budget Office (CBO).

However, the Greenback received support immediately after the release of stronger US S&P Global Purchasing Managers’ Index (PMI) data. S&P Global Composite PMI posted a 52.1 reading for May, rising from April’s 50.6 reading. Meanwhile, the Manufacturing PMI rose to 52.3 from 50.2 prior, while the Services PMI rose to 52.3 from 50.8.

Fed Governor Christopher Waller noted on Thursday that markets are monitoring fiscal policy. Waller further stated that if tariffs are close to 10%, the economy would be in good shape for H2, and the Fed could be in a position to cut interest rates later in the year. The CME FedWatch tool suggests that markets are pricing in nearly a 71% chance that the Fed would keep its interest rates steady through its June and July meetings.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.38%-0.30%-0.42%-0.22%-0.39%-0.35%-0.34%
EUR0.38%0.09%-0.05%0.17%-0.01%0.05%0.06%
GBP0.30%-0.09%-0.12%0.08%-0.06%-0.04%-0.03%
JPY0.42%0.05%0.12%0.21%0.02%0.07%0.08%
CAD0.22%-0.17%-0.08%-0.21%-0.20%-0.12%-0.11%
AUD0.39%0.00%0.06%-0.02%0.20%0.06%0.06%
NZD0.35%-0.05%0.04%-0.07%0.12%-0.06%0.00%
CHF0.34%-0.06%0.03%-0.08%0.11%-0.06%-0.01%

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

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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