FX.co ★ Dollar Hovers at Near 3½-Year Low

On Wednesday, the US dollar index remained around 96.6, marking its lowest point in nearly three and a half years. This decline is largely attributed to anticipations of dovish actions from the Federal Reserve and apprehensions regarding President Donald Trump's fiscal policies. Federal Reserve Chair Jerome Powell reaffirmed on Tuesday that the central bank maintains a patient stance on further interest rate reductions. He did not dismiss the possibility of a cut in the upcoming Federal Reserve meeting, underscoring that any future decisions will be based on incoming economic data. Powell also remarked that the Fed might have already reduced rates if not for the inflationary effects of Trump's tariffs. Simultaneously, the Senate narrowly passed Trump's tax-and-spending bill, which is expected to increase the national debt by $3.3 trillion, sending the bill back to the House for final approval. Investors are now looking forward to the ADP private payrolls report set for release on Wednesday and the highly anticipated June jobs report on Thursday, which will provide further insights into the labor market's strength and potential directions for monetary policy.