FX.co ★ Dollar Little Changed

The dollar index remained stable around 97.5 on Wednesday as traders evaluated the latest Federal Open Market Committee (FOMC) minutes alongside recent trade developments. The minutes from the Federal Reserve's June meeting indicated that most officials still anticipate rate cuts this year, although opinions differ—some advocate for a reduction as early as July, while others do not see the necessity for any cuts. The impact of tariffs on inflation also remains a point of contention among officials. Market projections continue to suggest two quarter-point rate cuts in 2025, with the initial adjustment most likely in September. On the trade side, President Trump has declared new tariff notices to the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, and Sri Lanka, imposing duties ranging from 25% to 30% commencing August 1. He also mentioned that Brazil would receive a similar notice. On Tuesday, Trump disclosed intentions to levy a 50% tariff on copper imports and alluded to additional industry-specific tariffs. In a firmer stance, he has threatened tariffs of up to 200% on pharmaceutical imports.