Thursday, 11 September 2025
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Dollar Steadies as Trump Announces Japan Trade Deal
Wednesday, 23 July 2025 10:14 WIB | US DOLLAR |DOLLAR

The dollar index stabilized around 97.5 on Wednesday, pausing a three-session slide as investors weighed the latest trade developments. President Donald Trump announced a trade agreement with Japan that includes a 15% tariff on Japanese exports to the US.

He also said Japan will invest $550 billion into the US and open its markets to key American goods. Adding to the cautious optimism, Treasury Secretary Scott Bessent signaled that the current tariff truce with China is likely to be extended ahead of its August 12 expiration.

The dollar had come under pressure in recent days amid rising uncertainty surrounding the August 1 deadline for most countries to finalize trade deals with Washington, raising concerns about a potential escalation in global tariffs.

On the monetary policy front, minutes from the latest FOMC meeting revealed that several members view tariffs as inflationary, prompting the Fed to hold off on further rate cuts for now.

Source: Trading Economics

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