Dollar Holds Steady as Trade Developments Eyed
The US dollar index hovered around 98.4 on Monday, holding steady after two consecutive weeks of gains, as markets focused on key trade and economic developments.
Commerce Secretary Howard Lutnick reaffirmed that August 1 is a "hard deadline" for countries to begin paying tariffs, though he emphasized that negotiations will continue until then.
Traders also awaited the June reading of leading indicators, which offer insight into the broader economic outlook. On the policy front, Federal Reserve Governor Christopher Waller reiterated support for a rate cut in July, pointing to a weakening labor market and subdued inflation risks.
He downplayed the inflationary impact of tariffs, calling it temporary, and said there are no signs that inflation expectations are rising, giving the Fed more room to ease. Meanwhile, the dollar eased slightly against the yen after Japan's ruling coalition suffered a historic defeat in the upper house election, fueling political uncertainty.
Source: Trading Economics
