The dollar declined against major currencies during Monday's trading, hovering near its lowest levels in about four years against the euro, as markets monitored developments in trade negotiations.
The U.S. Dollar Index – which measures the performance of the greenback against a basket of six major currencies – fell by 0.25% to 97.16 points as of 09:18 a.m. Mecca time, remaining close to its lowest level in over three years of 96.933 points, recorded last week.
The euro edged up by 0.11% to $1.1731, staying near its highest level since September 2021. The British pound also rose by the same margin to $1.3730, while the U.S. dollar dropped about 0.46% against the Japanese yen to 143.99 yen.
Amid President Trump's criticism of Federal Reserve Chair Jerome Powell, markets remain focused on the direction of monetary policy. Expectations for the Fed to cut interest rates at least once by a quarter point by September rose to 91.5%, up from 83% a week earlier, according to the CME Group’s FedWatch tool.
Attention now turns to the U.S. monthly jobs report due this Friday, which will provide insight into the state of the labor market amid ongoing trade uncertainty.
In addition, markets are awaiting the fate of Trump's massive tax cut proposal, which is to be decided by the Senate and, according to estimates by the Congressional Budget Office, could add $3.3 trillion to the national debt over the next decade
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