FX.co ★ Dollar Steadies as Trump Announces Japan Trade Deal

The dollar index steadied at approximately 97.5 on Wednesday, following a three-day decline, as investors assessed recent trade efforts. President Donald Trump disclosed the formation of a trade deal with Japan that entails a 15% tariff on Japanese products exported to the United States. Additionally, he announced Japan's commitment to invest $550 billion in the U.S. and to allow greater access to American goods in Japanese markets. In further positive news, Treasury Secretary Scott Bessent indicated that the existing tariff truce with China is expected to be prolonged beyond the approaching August 12 deadline. The dollar had recently faced pressure due to escalating uncertainties linked to the August 1 deadline for most countries to finalize trade agreements with the U.S., fueling apprehension about a potential increase in global tariffs. Regarding monetary policy, minutes from the latest Federal Open Market Committee (FOMC) meeting showed that several members view tariffs as inflationary, leading the Federal Reserve to refrain from cutting interest rates further at this time.