Dollar Dips Amid Fiscal Fears and Rising Treasury Yields
The U.S. dollar is set for a weekly drop amidst fiscal health worries in the United States, following Moody's debt rating downgrade. Rising treasury yields and concerns over President Trump's tax bill are influencing international currency markets, with the euro, yen, and other currencies gaining ground.
The U.S. dollar displayed a weaker performance on Friday, potentially marking its first weekly decline against both the euro and the yen in five weeks, as investor concerns about the country's fiscal health escalate.
This week, attention has shifted to the U.S.'s substantial $36 trillion debt and President Donald Trump's tax bill, which risks adding trillions more. The bill narrowly passed the House of Representatives and awaits debate in the Senate.
The dollar index is poised for a 1.1% drop even amidst a treasury selloff. Long-term U.S. bond yields are climbing, yet the dollar remains unsupported due to investor apprehensions about fiscal recklessness and rising interest expenses.
(With inputs from agencies.)
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