Dollar Slips on Renewed Tariff Concerns
The US dollar index slipped below 97 on Friday, snapping a two-day rally as renewed concerns over trade policy weighed on sentiment.
President Donald Trump announced plans to begin issuing letters on trade matters, potentially setting unilateral tariff rates ahead of the July 9 negotiation deadline—injecting fresh uncertainty into global markets. At the same time, the House of Representatives passed Trump’s sweeping tax cuts and spending bill, which now heads to the White House.
The legislation is projected to expand the federal budget deficit by over $3 trillion, adding to longer-term fiscal risks. Meanwhile, the US economy added 147,000 jobs in June, beating expectations of 110,000 and marking an increase from May’s 144,000. The data helped ease recession concerns and reduced pressure on the Federal Reserve to cut interest rates in the near term.
Source: Trading Economics