A declining trend in the US dollar and investors fear Trump fees

The US dollar index, Dixie, which tracks the performance of the green currency against a basket of other international currencies, is fighting to take advantage of the modest gains it achieved hours ago, despite its suffering from its declining direction in general and the negative prospects for the US dollar due to fears of President Donald Trump’s decisions, according to the American FX Street platform.

The dollar is attractive despite the decline

Despite the declining trend, the dollar attracts new sellers, as the index is currently trading around the area of ​​$ 103.70, down by more than 0.20% within 24 hours and remains close to its lowest level since early November, which he touched last Friday.
Also read: As the dollar declines … gold continues to rise for the third consecutive day

Investors concern and reasons for decline

Investors are still concerned about the customs duties imposed by US President Donald Trump and its potential impact on the American economy.
Aside from this, the weakest non -agricultural job report in the United States indicated on Friday to signs of the slowdown in the labor market and this still feeds speculation that the Federal Reserve will reduce interest rates several times this year, keeping the returns of US Treasury bonds low and it is seen that it is undermining the US dollar.

Other currencies burden the dollar

Away from this, the last height in other currencies led by a historical deal to alleviate borrowing limits in Germany and the Japanese -backed Japan to more of more interest rates by the Bank of Japan weigh the US dollar.

Dollar expectations in the longest term

However, the reluctance environment for the prevailing risk may provide some support to the US dollar as a safe haven.
Traders may also refrain from putting negative bets before the latest American inflation numbers.
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American consumer prices

The important US consumer price index report is scheduled to be issued on Wednesday, and the US producers’ price index will be followed on Thursday.
This may affect the market expectations on the path of reducing interest rates by the Federal Reserve, which in turn will play a major role in paying the dynamics of the US dollar price in the near term.
Meanwhile, traders will take signals on Tuesday signaling of vacancies and employment rotation to obtain short -term incentives.

The importance of the US dollar

The US dollar is the official currency of the United States of America and the “actual” currency of a large number of other countries as it is circulated along with local banknotes, making it the most trading currency in the world, as it represents more than 88 % of the total global foreign exchange trading volume or an average of $ 6.6 trillion in transactions per day according to 2022 data.
After World War II, the US dollar replaced the British pound as a global backup currency and throughout most of its history, the US dollar was backed by gold to the Bretton Woods agreement in 1971 when the gold standard disappeared.