Dollar Slides on Fiscal Concerns
The dollar index fell to around 99.5 on Thursday, marking its fourth straight daily decline, as fiscal concerns weighed on sentiment. Investors are increasingly uneasy over Trump’s proposed budget, which includes sweeping tax cuts projected to add between $3 trillion and $5 trillion to the national debt.
However, the legislation hit a political snag as several blue-state Republicans warned they would withhold support unless the bill includes a larger deduction for state and local taxes.
Further pressure on the dollar came from a lackluster 20-year bond auction, which signaled weakening demand for US government debt and reinforced concerns that foreign and domestic investors may be retreating from US assets.
In international developments, Japanese Finance Minister Kato said he did not discuss exchange rates with US Treasury Secretary Bessent during the G7 meetings in Canada. Meanwhile, reports suggested the US is pressing South Korea to introduce measures aimed at strengthening the won.
Source: Trading Economi
