Overview

• The dollar has fallen over 10 percent year to date, marking its weakest performance since 1973 with the dollar index plunging 12.1 percent in the first half of the year.
• President Trump’s signature $3.4 trillion spending and tax package cleared its final legislative hurdle, stoking fresh concerns about U.S. debt sustainability and investor confidence.
• Stronger-than-expected June nonfarm payroll gains pushed back market expectations for Federal Reserve rate cuts, giving the dollar a modest rebound after hitting multi-year lows.
• Foreign investors have pared back purchases of U.S. Treasuries and rotated capital into European and Japanese markets amid policy uncertainty.
• Tariffs set to take effect on July 9 are pressuring trade partners to negotiate deals with the U.S., adding another layer of uncertainty to the greenback’s outlook.