FX.co ★ DXY Recovers Slightly

The dollar index rose slightly to 102.7 on Monday, marking a modest recovery following a 1.4% decline last week amidst increasing uncertainties surrounding tariffs and concerns about U.S. economic growth. President Trump's announcement of new tariffs resulted in a nearly $6 trillion loss in U.S. markets. When questioned about the repercussions, Trump remarked that "sometimes medicine is needed" and refuted claims of intentionally provoking a market selloff. In the meantime, over 50 nations have reached out to the White House to initiate trade discussions. On Friday, China responded by imposing a 34% tariff on all U.S. imports, with expectations that other major economies will adopt similar measures. Traders are now anticipating further rate cuts from the Federal Reserve, with the market currently estimating a 55% likelihood of a rate cut in May and projecting over 100 basis points of easing by the end of the year. Just the previous week, investors were anticipating that rates would remain unchanged. However, Federal Reserve Chair Jerome Powell cautioned that it is still premature to decide on the appropriate policy course.