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Dollar index marks fresh lows since March 2022; All eyes on Fed Powell's speech
(12:58, 01 Jul 2025)

The dollar index extends downside near a three and half year low amid reported speculation of Trump electing a new Federal chair later this year. According to the White House, US President Donald Trump has formally raised complaints about high interest rates to Federal Reserve (Fed) Chair Jerome Powell, criticizing Powell as being 'too late. Moreover, the approval of Trump's 'One Big Beautiful Bill' is likely to increase the fiscal deficit by a substantial $3.8 trillion, which could further weaken the greenback. Easing geopolitical tensions in the Middle East has also reduced safe haven demand for the greenback. Investors now await the US job openings data, the ADP employment report, and the non-farm payrolls report, due this week, for more clues on the Fed's policy path. Also, market participants remain cautious ahead of Chief Powell's speech later in the global day. The dollar index that measures the greenback against a basket of currencies is quoting at 96.34, down 0.16% on the day.

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