Dollar Steady
The dollar index was steady around 100.4 on Tuesday after falling 0.6% in the previous session following a surprise downgrade of the U.S. sovereign debt. Moody's cut the U.S. credit rating from Aaa to Aa1 on Friday, citing concerns about rising debt and persistent deficits.
Adding to fiscal concerns, the House Budget Committee approved President Trump's tax and spending bill late Sunday, which is projected to add trillions of dollars to the deficit over the next decade. Despite the criticism, the Trump administration has argued that tax cuts would spur economic growth, raise revenues and ultimately help narrow the deficit.
Meanwhile, New York Fed President John Williams suggested Monday that the Fed may not be ready to cut interest rates before September because it faces a gloomy economic outlook. Atlanta Federal Reserve Bank President Raphael Bostic also reiterated his expectation for one rate cut this year amid uncertainty caused by tariffs.
Source: Trading Economics
