FX.co ★ Dollar Weakens on Trump's Tariff Pledge

The dollar index dropped below the 98.5 mark on Thursday, nearing its lowest point since early 2022, as fresh tariff threats emerged from President Donald Trump. Trump outlined intentions to send official notifications to major trading partners within the upcoming one to two weeks, detailing unilateral tariffs aimed at pressuring nations into trade agreements. Despite this aggressive stance, US Treasury Secretary Scott Bessent indicated that there might be a potential continuation of the current 90-day suspension on reciprocal tariffs for countries demonstrating "good faith" in ongoing trade discussions. The dollar has been under consistent selling pressure this year, with trade policy uncertainties continuing to undermine investor confidence in US assets. Further downward momentum was fueled by a softer-than-anticipated CPI figure for May, which heightened market speculation about a potential Federal Reserve rate cut as early as September. Attention is now focused on Thursday's PPI release for additional insights into the inflation outlook and the direction of monetary policy.