FX.co ★ Dollar Pressured by Trade Uncertainty

The dollar index remained below 98 on Tuesday after declining for two consecutive sessions, as investors monitored developments in trade negotiations ahead of the August 1 deadline for reaching agreements with the United States. Treasury Secretary Scott Bessent emphasized on Monday that the administration values the quality of trade agreements more than adherence to strict timelines. He also mentioned that President Donald Trump would determine whether to extend the deadline for nations making productive negotiations with Washington. On the monetary side, the markets are keenly anticipating remarks from Federal Reserve Chair Jerome Powell at an event in Washington later today to glean insights into interest rate policy. Despite continued pressure from Trump urging the Fed to lower rates, traders are not yet anticipating a rate change this month.