Rate Cut Expectations Push US Dollar to Weekly Low
The US Dollar Index (DXY), which measures the strength of the dollar against six major currencies, fell to around 97.20 on Monday (June 30, 2025) during the European trading session. This decline continued the weakening trend since June 19, along with increasing market expectations that the Federal Reserve will cut interest rates in the near future.
Market players are now waiting for the US employment report to be released later this week, especially the Nonfarm Payrolls data. It is estimated that the US economy only added around 110,000 new jobs in June, lower than the previous month. Meanwhile, the unemployment rate is also expected to increase from 4.2% to 4.3%.
The dollar was also pressured by weak US economic data. Personal spending in the U.S. fell in May, while personal income fell 0.4%, the biggest decline since 2021. Dovish comments from Minneapolis Fed President Neel Kashkari, who supports two interest rate cuts starting in September, added to the pressure on the dollar.
However, Fed Chairman Jerome Powell remained cautious, warning that President Donald Trump's tariff policies could push up prices, potentially making inflation harder to control. This is an important consideration for the central bank before making future interest rate decisions.
Source: (ayu-Newsmaker)
