FX.co ★ Dollar Index Holds Below 100

On Monday, the US dollar index dipped slightly, remaining below the 99.7 threshold, as ongoing tariff concerns and unclear economic policies continued to redirect investment away from US markets. Recent data highlights how the aggressive tariffs imposed by President Trump and his administration have already impacted US economic growth, with an unexpected contraction in Q1 GDP and new reports of significant declines in activity across major ports. The situation was further pressured by fears that the White House may be attempting to devalue the dollar to reduce the domestic goods trade deficit, particularly after Taiwan's monetary authority chose not to intervene in support of its currency following a sharp increase. Concurrently, stronger than anticipated growth in the Euro Area has led investors to maintain their preference for European assets this year. Nevertheless, more favorable data releases have eased some recession anxieties, including a higher-than-expected ISM Services PMI and strong employment figures.