US Dollar Index Falls to 97.30 as Tariff Fears Mount

US Dollar Index Falls to 97.30 as Tariff Fears Mount

The US Dollar Index (DXY) dropped to 97.30 during the early Thursday Asian session, falling 0.17% on the day, as fresh tariff threats from President Donald Trump intensified market concerns over global trade and US economic stability.

Trump’s New Tariff Wave Triggers Dollar Weakness

President Trump announced additional tariff hikes, including:

• 50% tariff on Brazil, the highest so far
• 30% tariffs on Algeria, Libya, Iraq, and Sri Lanka
• 25% on Brunei and Moldova
• 20% on goods from the Philippines

He also confirmed that the 50% tariff on copper imports, first announced earlier this week, will take effect on August 1, citing national security risks (Reuters).

Fed Minutes Reflect Policy Uncertainty

According to the June 17–18 Fed Minutes, policymakers expressed divided views, balancing inflation risks from tariffs against growing signs of labor market softening. The Fed continues its wait-and-see approach, which leaves the USD vulnerable to incoming data.

Initial Jobless Claims Awaited

Later today, markets will focus on the release of the US Initial Jobless Claims, a key indicator that could sway expectations for future Federal Reserve action.

Outlook: More Pressure Ahead for the USD?

Rising trade tensions, combined with domestic economic uncertainty and dovish Fed sentiment, may continue to pressure the USD in the short term.