Dollar slips and major currencies as US tariffs close
Rocky Swift and Johann M. Cherian
TOKYO (Reuters) – The dollar slid against other big currencies on Friday after President Donald Trump won a signature tax cut bill on the final hurdle and received a signature tax cut bill to the country to ensure trade deals with the US.
The US currencies came after stronger than expected US employment data pushed the timing of potential rate cuts by the Federal Reserve. However, the dollar index, which tracks currencies against major peers, is heading towards a weekly decline in the second battle.
Republican-controlled representatives The House of Representatives narrowly passes Trump’s “one, big, beautiful bill” spending and tax cuts, adding $3.4 trillion to its $36.2 trillion debt. Trump is expected to sign the bill on Friday.
With the US shut down on Independence Day, attention will be focused on Trump’s July 9 deadline when sweep tariffs come into effect on countries like Japan, which have not yet secured a trade deal.
“The desire for the dollar has faded as US debt concerns rise and US debt is at stake,” said Ipek Ozcaldeskaya, senior market analyst at Swiss Coote Bank.
“Also, due to the fact that tariff conditions and the fact that trade disruptions have a negative impact on US growth, the Fed cannot necessarily support the economy when inflation risks are rising.”
The dollar index has won its worst first half since 1973 as the chaotic development of the tariffs that Trump cleaned has raised concerns about the US economy and the Treasury’s Department of Safety.
The US currency has fallen by more than 6% since April 2nd. This was when the US announced tariffs worldwide, reaching its lowest in over three years against the euro and British pound at the beginning of the week.
The dollar index fell 0.1% to 96.92, trimming a 0.4% advance on Thursday. The euro adds 0.2% to $1.178, earning a 0.5% profit each week.
The yen rose 0.4% against the dollar to 144.32, while the Swiss franc secured 0.2% to 0.793 per dollar.
Trade concerns
Trump said many countries will receive letters on Friday specifying the tariff rates they face, marking individual transactions with trading partners as they move from their previous pledge.
European Commission Chairman Ursula von der Leyen said the EU is aiming for a trade agreement with the US “in principle” before the deadline. Japan, which has been the focus of Trump’s recent rage, is reportedly sending major trade negotiators to the United States this weekend.