Dollar Struggles Amid U.S. Deficit Woes and Trade Deal Uncertainties
The U.S. dollar weakened against the euro and Swiss franc due to concerns over a growing government deficit and possible trade deals. Senate Republicans push for President Trump's tax-cut bill amidst internal disagreements. Treasury Secretary warns of potential tariffs, while Canada's trade negotiations affect currency dynamics.
The U.S. dollar faced significant challenges on Monday, slipping against the euro and the Swiss franc. Market analysts are contemplating the implications of an ever-growing U.S. government deficit and the likelihood of forging trade agreements with key trading partners.
In a contentious move, Senate Republicans are attempting to pass President Donald Trump's substantial tax-cut and spending proposal, despite intra-party disagreements. The proposal is anticipated to add a hefty $3.3 trillion burden to the nation's debt.
Meanwhile, Treasury Secretary Scott Bessent cautioned that nations could incur much higher tariffs by July 9, irrespective of ongoing negotiations, leaving extensions at Trump's discretion. Canada recently postponed its digital services tax targeting American tech companies, seeking to revive stalled trade discussions with the U.S.
(With inputs from agencies.)
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