FX.co ★ Dollar Slips on Renewed Tariff Concerns

The US dollar index fell below 97 on Friday, ending a two-day uptrend as renewed worries over trade policy impacted investor sentiment. President Donald Trump announced intentions to begin distributing letters related to trade issues, hinting at the potential unilateral setting of tariff rates before the negotiation deadline on July 9. This development injected a fresh wave of uncertainty into global markets. Concurrently, the House of Representatives approved Trump's extensive tax cuts and spending bill, which now awaits his signature. The legislation is expected to increase the federal budget deficit by over $3 trillion, thereby compounding long-term fiscal challenges. In parallel, the US economy added 147,000 jobs in June, surpassing the forecast of 110,000 and showing growth from May's 144,000. This employment data helped alleviate recession fears and decreased the immediate necessity for the Federal Reserve to lower interest rates.