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Currency News

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(26 May 2025, 11:16)

Dollar index tanks below 99 mark amid Trump tariff uncertainty


The dollar index is lingering at an over one month low on Monday morning in Asia as US President Donald Trump stayed uncertain on his trade stance, denting investors confidence on US assets. Donald Trump extended a deadline for EU trade deal until 9 July, following a call with European Commission president. Trump had threatened to impose 50 percent tariffs on imports from the European Union beginning June 1st, claiming talks with the bloc are "going nowhere." The US dollar index that measures the greenback against a basket of currencies is quoting lower at 98.74. The index tanked below 99 mark amid a steady decline since hitting above 101 mark earlier in the month. Growing concerns around the US fiscal outlook is also adding pressure on the greenback. Meanwhile, EURUSD and GBPUSD recovered some of its lost ground and are quoting higher by 0.3% at $1.1421 and $1.3578 respectively. Meanwhile, Minneapolis Federal Reserve President Neel Kashkari reportedly said in a speech that he expects to see interest rates on hold for now as U.S. data have yet to show the full impact of tariffs, which could limit some losses in the counter.

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