Tuesday, 29 July 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Dollar Index softens as markets weigh US-Iran tensions and Fed rate outlook
Monday, 23 June 2025 23:18 WIB | US DOLLAR |DOLLAR

The US Dollar Index (DXY) is edging lower after a strong start on Monday as markets monitor the risks of an Iranian retaliation against the United States (US) and look ahead to Federal Reserve (Fed) Chair Jerome Powell's upcoming testimony on Tuesday.

Over the weekend, US President Donald Trump confirmed that American forces struck three Iranian nuclear sites, prompting fears of retaliation from Tehran. The possibility that Iran could respond by disrupting Oil traffic through the Strait of Hormuz a critical maritime chokepoint has kept risk sentiment on edge.

The Dollar Index, which measures the USD against a basket of major currencies, began the week on a stronger footing, rising above the prior psychological resistance level of 99 before sliding lower.

Adding to the initial upside was Monday's release of S&P Global's preliminary Purchasing Managers' Index (PMI) data for June. The manufacturing index came in at 52, unchanged from May but above consensus expectations of 51. The services component moderated slightly to 53.1 from 53.7 but still indicated expansion. These figures underscored resilience in the US economy, helping to stabilize bond yields and support the US Dollar.

However, during the US session, attention shifted back to monetary policy. Fed Governor Michelle Bowman added to a growing chorus of officials leaning dovish, saying the central bank should stay open to the possibility of a rate cut in July as inflationary pressures ease. Her comments echoed those of Governor Christopher Waller last week, who suggested a cut in July could be warranted if disinflation continues.

With Chair Jerome Powell scheduled to deliver his semi-annual testimony before Congress on Tuesday, traders are preparing for a potentially pivotal update on the Fed's thinking. Following the Fed's latest dot plot, which penciled in two cuts for 2025, Powell's tone on inflation, growth, and global uncertainty will likely shape near-term moves in the US Dollar.

Source: Fxstreet

RELATED NEWS
US Dollar steadies as US-EU deal eases trade tensions...
Monday, 28 July 2025 23:29 WIB

The US Dollar (USD) starts the week on a firmer note, extending its modest recovery since Thursday, as easing global trade tensions lift investor sentiment. Interestingly, the Greenback, which typical...

US Dollar Strengthens as US-EU Deal Eases Trade Tensions ...
Monday, 28 July 2025 19:44 WIB

The US dollar (USD) started the week on a positive note, continuing its modest recovery since Thursday, as easing global trade tensions boosted investor sentiment. Interestingly, the greenback, which ...

Dollar Slips as Euro Strengthens on US-EU Trade Deal ...
Monday, 28 July 2025 09:46 WIB

The US dollar index dipped to around 97.5 on Monday, retreating after a two-day advance as the euro strengthened following the weekend's US-EU trade agreement. The deal, which imposes a 15% tariff on ...

US Dollar Strengthens Amid Fed Uncertainty And Renewed Trade Optimism ...
Friday, 25 July 2025 23:11 WIB

The US dollar (USD) traded with positive sentiment for the second consecutive day on Friday (July 25th), driven by upbeat US economic data and renewed optimism about trade. On Thursday, better-than-ex...

Dollar steadies as focus shifts to Fed, BOJ meetings ...
Friday, 25 July 2025 13:11 WIB

The dollar inched off two-week lows on Friday, but kept on track for its biggest weekly drop in a month, as investors contended with U.S. tariff negotiations before an August 1 deadline, while looking...

LATEST NEWS
Japanese Shares Fall for Third Consecutive Session

The Nikkei 225 fell 0.9% to below 40,700, while the broader Topix Index declined 0.8% to 2,908 on Tuesday, marking a third straight session of losses for Japanese equities. The initial optimism from recent trade agreements began to wane, and...

Asia-Pacific markets fall as traders await outcome of U.S.-China trade talks

Asia-Pacific markets fell as investors awaited the outcome of the ongoing U.S.-China trade talks. Investors also await the result of the U.S. Federal Reserve meeting due Wednesday stateside, where it will make a decision on whether to cut interest...

Oil Edges Higher, Aided by Renewed Supply Concerns -- Market Talk

Oil edges higher in early Asian trade, aided by renewed supply concerns. President Trump said that he would give Russian President Putin 10 or 12 days to reach a cease-fire with Ukraine or face more economic pressure from the U.S.. Previously,...

POPULAR NEWS
Europe Reacts With A Mix Of Relief And Concern Over US Trade Deal
Monday, 28 July 2025 17:25 WIB

European governments and companies reacted with a mix of relief and concern on Monday (July 28th) to the framework trade agreement reached with US...

Trump announces trade deal with EU following months of negotiations
Monday, 28 July 2025 07:35 WIB

The United States and European Union have reached a landmark trade agreement that includes a 15% tariff on EU goods entering the U.S., President...

European stocks close lower as EU-U.S. trade deal optimism wanes
Tuesday, 29 July 2025 00:34 WIB

Europe's Stoxx 600 index erased earlier gains to close 0.23% lower as investors turned less positive over the details of the U.S.-EU trade...

European Stocks Rise on EU-US Trade Deal
Monday, 28 July 2025 14:27 WIB

Major bourses in Europe were higher on Monday, with the STOXX 50 adding 1.3% and the STOXX 600 gaining 1%, after the US and European Union reached a...