Dollar Hovers Amid Fiscal Debates and Global Trade Tensions

The stability of the dollar comes as a surprise following a week marked by declines, primarily driven by the Federal Reserve's guarded stance on the economy and ongoing U.S. fiscal debates.

Moody's recent downgrade of the U.S. sovereign rating has intensified fiscal worries, with particular attention now on President Donald Trump's significant tax cuts slated for discussion in Congress. Analysts predict further dollar weakness as lending to the U.S. demands higher premiums.

The global market scene remains tense with trade frictions, notably as the U.S. ponders tariff actions, impacting not just the dollar but other significant currencies like the Australian dollar and British pound. Meanwhile, international discussions, such as the G7 meet in Canada, highlight ongoing currency policy considerations.

(With inputs from agencies.)