21.07.202514:30:16UTC+00Dollar Falls for 2nd Day

The US dollar index continued its decline on Monday, dipping below the 98 threshold and nearing the lows of 2022 that were revisited last month. Investor sentiment remained cautious due to increased uncertainty regarding the impending tariffs and rising concerns over the Federal Reserve's autonomy. With the August 1st deadline looming, Commerce Secretary Lutnick reaffirmed the date as a "firm deadline" for countries to commence tariff payments, although negotiations are anticipated to proceed. Adding to market anxiety, Treasury Secretary Bessent has called for a reassessment of the Federal Reserve as an institution. President Trump’s repeated criticism of Chair Powell for not lowering interest rates has sparked speculation about the possibility of Powell's dismissal. Despite this recent downturn, the US dollar has risen nearly 1% in July, positioning it for its initial monthly gain of 2025. This gain has been supported by stronger-than-expected economic data, which has eased market expectations for Federal Reserve rate cuts this year.