Overview

• The US Dollar Index fell to 98.58 on June 3, marking its weakest level since late April as factory and jobs data signal mounting economic strain.
• US steel and aluminum tariffs will double to 50% starting June 4, intensifying trade frictions and supply chain uncertainties.
• Morgan Stanley strategists led by Matthew Hornbach forecast the dollar to drop 9% to an index reading of 91 by mid-2026, driven by expected Federal Reserve rate cuts totaling 175 basis points.
• Analysts project the euro rising to $1.25, the pound climbing to $1.45 and the yen strengthening to ¥130 against a weakening greenback.
• New legislation imposing higher taxes on foreign companies from countries labeled discriminatory is expected to deter overseas investment, further weakening the dollar.