Dollar Edges Lower Ahead of Trump’s Tariff Deadline
A gauge of the dollar edged lower as concerns mount over Donald Trump’s July 9 tariff deadline and US fiscal policy following the passage of a tax bill.
The Bloomberg Dollar Spot Index declined 0.1% in Asia trading.
Trump secured a sweeping shift in US domestic policy as the House passed a $3.4 trillion fiscal package that cuts taxes and curtails spending on safety-net programs.
The US president said that his administration may begin sending out letters to trading partners as soon as Friday setting unilateral tariff rates ahead of a deadline for negotiations.
US markets closed on Friday for Independence Day.
“Tariff uncertainty is the major risk as we approach July 9,” said Felix Ryan, a foreign exchange analyst at ANZ. “A resumption of steep tariffs would likely spark more USD weakness”.
US policy uncertainty remains the key headwind for the greenback, and the passage of the tax bill overnight may add at the margins to these policy concerns.
Better-than-expected jobs data of US in June won’t meaningfully changes downside outlook for the USD.
USD/JPY declined 0.2% to 144.72; the Japanese currency outperformed group-of-ten peers.
Japan’s household spending rose the most since the summer of 2022 in a sign that consumer may be getting used to persistent inflation and could support for an economy that’s taking a hit from US tariffs.
EUR/USD rose 0.1% to 1.1763.
AUD/USD little changed at 0.6570.
GBP/USD little changed at 1.3649.
Source: Bloomberg
