#us-dollar

#us-dollar

A simple strategy of borrowing in low-yielding currencies like the Japanese yen or the Swiss franc and putting your money in dollars looks set to beat the implied returns on markets such as European stocks and Chinese government bonds once the volatility of these assets is taken into account, according to Bloomberg calculations. That suggests the dollar will maintain its critical position in global portfolios, despite worries about its future this year as President Donald Trump shook up the global economic order.

The dollar index held steady on Tuesday, as markets awaited confirmation that the US government shutdown could soon end.

The dollar traded within a narrow range on Tuesday as investors adopted a cautious stance ahead of a high-stakes week featuring key central bank decisions and pivotal trade developments. US Treasury yields eased slightly, with the 10-year remaining below 4%. On the monetary front, the Federal Reserve is widely expected to deliver a 25-basis-point rate cut on Wednesday. At the same time, both the European Central Bank and the Bank of Japan are projected to keep rates unchanged, which could weigh on the dollar.

The dollar index rose on Wednesday, as weakness in the euro and yen overshadowed concerns about the US government shutdown. The prolonged impasse continues to delay key data releases and cloud the policy outlook, but investors appear more focused on political turmoil in France and uncertainty in Japan. In Tokyo, Sanae Takaichi's unexpected leadership win raised expectations of stimulus-friendly policies that could weigh further on the yen.

The US dollar traded within a narrow range on Monday, hovering near multi-month lows, and stabilizing after a decline as last week's weak payrolls data intensified expectations of policy easing. The greenback posted losses on Friday when nonfarm payrolls showed that only 22,000 jobs were created in August, and the unemployment rate climbed to 4.3%. The figures cemented the view that the labour market is losing steam, leaving the dollar vulnerable ahead of this week's upcoming data.

The US dollar steadied on Thursday, as traders weighed signals of a softer labour market and awaited further releases. Job openings fell to a low in July, undershooting expectations, while factory orders dropped for a second consecutive month. These indicators reinforced the view that the economy is cooling, even as attention now shifts to today's ISM Services index, expected at 51, and to Friday's payrolls.

The US dollar was resilient on Tuesday, with traders cautious ahead of a heavy macroeconomic calendar. The currency's resilience came as US markets reopen after the holiday, leaving attention on the ISM Manufacturing index due later today. Consensus points to a modest improvement to 49, which would nonetheless mark a sixth straight month below the 50 expansion threshold. Any upside surprise could reinforce the dollar by signalling economic resilience, while weaker data may add to pressure from mounting rate-cut expectations.

In a move without precedent in modern US history, Trump said on Tuesday evening that Cook was "effective immediately" removed from her position on the Fed's seven-strong governing board over allegations of mortgage fraud. Cook has denied wrongdoing and said she would not resign, setting the stage for a legal battle over whether the president has the authority to fire a Fed governor. The dispute comes as Trump intensifies pressure on the central bank to deliver steep interest rate cuts to support the economy and the jobs market.

President Donald Trump's attempt to dismiss Fed Governor Lisa Cook over fraud allegations has intensified concerns about the central bank's independence. Markets view the episode as part of a broader effort by Trump to increase influence over monetary policy, which could undermine confidence in the dollar. Cook's removal could pave the way for more dovish appointments, accelerating the prospect of rate cuts.

Foreign investor holdings of US Treasuries reached a record high of $9.13 trillion in June, reflecting strong overseas demand despite a declining dollar.

The dollar index suffered its biggest one-day drop since May 23 as markets swiftly reassessed the outlook for rates and growth.

The U.S. Dollar Index (DXY) has declined to 97.15, its lowest point since July 7, influenced by various political, monetary, and trade developments.

The US dollar steadied after three days of losses, as markets assessed the newly announced trade agreement with Japan, which involves a 15% tariff on exports.

The U.S. dollar recorded its worst first-half performance in over 50 years, showing a significant drop of 13% against the euro and 6% against the Japanese yen.

The US dollar strengthened amid an unexpected increase in job openings in America, as a result sterling edged lower by 0.3% to $1.3712.

The United States dollar has had its worst first six months of the year since 1973, as President Donald Trump's economic policies have prompted global investors to sell their greenback holdings.