FX.co ★ US Dollar Index Reapproaches 3-Year Low

The dollar index fell further on Thursday, dipping below the 99.4 point, which undercuts the slight recovery seen in the previous session, keeping it precariously close to the three-year low of 98 reached earlier in the week. The persistent skepticism surrounding a potential trade agreement between the US and China has fueled doubts regarding the enduring strength of US economic leadership. Chinese officials have stated unequivocally that Beijing will not engage in negotiations with Washington until there is a reduction in tariffs imposed on China. This pronouncement has intensified uncertainties regarding a straightforward resolution to the ongoing trade conflict between the two nations, thereby exerting downward pressure on the dollar, US equities, and Treasuries. Investors have been prompted to seek refuge in gold and foreign assets, especially after President Trump hinted at possibly ousting Fed Chair Jerome Powell, thereby risking the Federal Reserve's independence. President Trump later retracted his comments, affirming Powell will continue as Chairman.