The dollar index fell to around 97.5 on Thursday, extending its decline for a second straight session as uncertainty over US tariffs undermined confidence in the reserve currency. On Wednesday, US Trade Representative Jamieson Greer indicated that tariff rates on certain countries could be raised to 15% or higher from the recently imposed 10%, without providing additional details. In his State of the Union address, President Donald Trump offered only limited comments on trade policy and signaled no intention of changing course, even after the Supreme Court struck down his sweeping reciprocal tariffs.
On the monetary front, the Federal Reserve is widely expected to leave interest rates unchanged at its meeting next month. At the same time, US and Iranian negotiators are set to resume nuclear talks in Geneva later today, contributing to the market’s cautious mood. Externally, the dollar weakened against the yen amid speculation that the Bank of Japan may deliver a rate hike in the near term.
