US Dollar Index falls toward 99.50 as Trump’s One Big Beautiful Act clears first hurdle

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • The US Dollar Index struggles as traders adopt caution due to growing debt concerns in the United States.

  • The House of Representatives has advanced Trump's “One Big Beautiful Bill” to the Senate floor.

  • US 30-year bond yield retreated after hitting 5.15% on Thursday, the highest in 19 months.

The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, depreciates toward two-week lows. At the time of writing, the DXY is trading around 99.60, remains under pressure as the 30-year yield on US Treasury bond is trading lower at 5.05% after pulling back from 5.15%, reached in the previous session, its highest level since November 2023.

The US Dollar stepped down due to growing concerns regarding the increase in the fiscal deficit in the United States (US), while Trump's “One Big Beautiful Bill” is on its way to the Senate floor. The US House of Representatives approved Trump’s budget by a single vote of 215-214 on Thursday, which would deliver tax breaks on tip income and US-manufactured car loans. The proposal is expected to increase the deficit by $3.8 billion, according to the Congressional Budget Office (CBO).

However, the Greenback received support immediately after the release of stronger US S&P Global Purchasing Managers’ Index (PMI) data. S&P Global Composite PMI posted a 52.1 reading for May, rising from April’s 50.6 reading. Meanwhile, the Manufacturing PMI rose to 52.3 from 50.2 prior, while the Services PMI rose to 52.3 from 50.8.

Fed Governor Christopher Waller noted on Thursday that markets are monitoring fiscal policy. Waller further stated that if tariffs are close to 10%, the economy would be in good shape for H2, and the Fed could be in a position to cut interest rates later in the year. The CME FedWatch tool suggests that markets are pricing in nearly a 71% chance that the Fed would keep its interest rates steady through its June and July meetings.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.


USDEURGBPJPYCADAUDNZDCHF
USD
-0.38%-0.30%-0.42%-0.22%-0.39%-0.35%-0.34%
EUR0.38%
0.09%-0.05%0.17%-0.01%0.05%0.06%
GBP0.30%-0.09%
-0.12%0.08%-0.06%-0.04%-0.03%
JPY0.42%0.05%0.12%
0.21%0.02%0.07%0.08%
CAD0.22%-0.17%-0.08%-0.21%
-0.20%-0.12%-0.11%
AUD0.39%0.00%0.06%-0.02%0.20%
0.06%0.06%
NZD0.35%-0.05%0.04%-0.07%0.12%-0.06%
0.00%
CHF0.34%-0.06%0.03%-0.08%0.11%-0.06%-0.01%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Dollar steadies before U.S. jobs data; euro pressured by French turmoilThe U.S. dollar edged higher Tuesday, stabilizing after a slide to seven-week lows as traders looked ahead to key labor and inflation data expected to lock in a Federal Reserve rate cut next week.
Author  Mitrade
7 hours ago
The U.S. dollar edged higher Tuesday, stabilizing after a slide to seven-week lows as traders looked ahead to key labor and inflation data expected to lock in a Federal Reserve rate cut next week.
placeholder
Asian Currencies Flat as Dollar Softens Amid Labor Market and Fed Rate-Cut FocusMost Asian currencies slipped slightly on Thursday as the U.S. dollar recovered some of its overnight losses, driven by increasing market confidence that the Federal Reserve will reduce interest rates this month due to ongoing signs of labor market cooling.
Author  Mitrade
Sept 04, Thu
Most Asian currencies slipped slightly on Thursday as the U.S. dollar recovered some of its overnight losses, driven by increasing market confidence that the Federal Reserve will reduce interest rates this month due to ongoing signs of labor market cooling.
placeholder
Dollar and long-term Treasuries fall as Trump intensifies Fed clash; gold gainsThe dollar and long-term U.S. Treasury bonds declined on Tuesday following President Donald Trump’s unprecedented move to dismiss Federal Reserve Governor Lisa Cook.
Author  Mitrade
Aug 26, Tue
The dollar and long-term U.S. Treasury bonds declined on Tuesday following President Donald Trump’s unprecedented move to dismiss Federal Reserve Governor Lisa Cook.
placeholder
Asian Currencies Steady as Fed Rate Cut Expectations Weaken; Yen Strengthens on Robust Q2 GDPMost Asian currencies remained relatively stable on Friday following stronger-than-anticipated U.S. producer inflation figures, which diminished expectations for aggressive Federal Reserve rate cuts.
Author  Mitrade
Aug 15, Fri
Most Asian currencies remained relatively stable on Friday following stronger-than-anticipated U.S. producer inflation figures, which diminished expectations for aggressive Federal Reserve rate cuts.
placeholder
Dollar Weakens on Growing Fed Cut Expectations; Bitcoin Hits New Record HighThe U.S. dollar dropped to multi-week lows on Thursday as traders intensified expectations that the Federal Reserve will resume cutting interest rates next month.
Author  Mitrade
Aug 14, Thu
The U.S. dollar dropped to multi-week lows on Thursday as traders intensified expectations that the Federal Reserve will resume cutting interest rates next month.
Real-time Quote