FX.co ★ Dollar Falls for 2nd Session

The dollar index decreased to 100.1 on Tuesday, reaching its lowest point in nearly two weeks. This drop followed a 0.7% decline from the previous trading session, as growing concerns over the United States' economic and fiscal future dampened market sentiment. Market participants also kept a keen eye on potential shifts in international trade discussions. During the weekend, Treasury Secretary Scott Bessent emphasized that President Trump remains committed to implementing the tariffs outlined last month, targeting trading partners that do not engage in "good faith" negotiations. Fiscal apprehensions were heightened after Moody’s downgraded the US credit rating from Aaa to Aa1 last Friday, attributing the downgrade to increasing government debt and an expanding budget deficit. President Trump’s tax-cut proposal, which introduces new tax cuts without corresponding spending reductions, also added to fiscal concerns. Meanwhile, statements from New York Fed President John Williams and Atlanta Fed President Raphael Bostic suggested that policymakers may not be prepared to consider rate reductions before September.