The Dollar's Tumultuous Ride: Trade Uncertainty and Fiscal Woes
The U.S. dollar hit a near four-year low against the euro as concerns over rising government deficits and trade agreements grew. Significant currency movements, including an increase in the euro and further trade speculations, underline an ongoing weakening trend in the dollar's performance within international markets.
On Monday, the U.S. dollar reached a near four-year low against the euro, raising concerns about the growing U.S. government deficit and uncertain trade agreements with major partners. Senate Republicans are attempting to pass President Trump's comprehensive tax-cut and spending plan, facing internal dissent over an anticipated $3.3 trillion debt increase.
The euro, reaching its highest since 2021 at $1.1780, has gained 14% against the dollar this year. FX consulting firms highlight the ongoing dollar weakening, pointing to notable gains by currencies like the Swedish krona and the Swiss franc. The European Union's massive spending bill has buoyed the euro's rise.
Treasury Secretary Scott Bessent warned of potential steep tariffs as trade negotiations progress. Amid positive developments with China, trade prospects remain uncertain with President Trump indicating tariff implications for countries like Japan. The dollar index slid 0.35%, indicating a challenging year for the greenback.
(With inputs from agencies.)
- READ MORE ON:
- dollar
- euro
- trade deals
- government deficit
- U.S.
- Trump
- tariffs
- currency
- exchange rates
- market trends
Google News