24.06.2025 08:19
The US Dollar Index (DXY) experienced a significant decline, nearing 98.00, driven by a confluence of factors. Easing geopolitical tensions between Israel and Iran, following a ceasefire urged by President Trump, significantly reduced the dollar's safe-haven appeal. This decrease in demand for a safe-haven asset is a predictable consequence of reduced global uncertainty.
Simultaneously, Federal Reserve Governor Michelle Bowman hinted at a potential interest rate cut during the July meeting. This dovish stance further weakened the dollar's attractiveness relative to other major currencies. The decrease in the DXY reflects a shift in market sentiment away from the perceived safety of the US dollar and towards riskier assets.
As a result, the US dollar underperformed against its major counterparts during Tuesday's European trading hours. The most dramatic losses were recorded against the New Zealand dollar, highlighting the relative strength of other currencies in the current market conditions. The following table details the percentage changes in the US dollar against major currencies.
| Currency | USD Change |
|---|---|
| EUR | -0.45% |
| GBP | -0.77% |
| JPY | -0.14% |
| CAD | -0.81% |
| AUD | -0.90% |
| NZD | -0.00% |
| CHF | -0.28% |
This data, presented as a heat map showing percentage changes between currency pairs, provides a comprehensive overview of the dollar's performance against other major global currencies. For example, the USD weakened against the JPY by 0.14%.
President Trump's call for restraint and the possibility of lower US interest rates combined to create a perfect storm for the dollar's decline, underscoring the sensitivity of the currency to both geopolitical events and monetary policy expectations. The market reacted swiftly, demonstrating the significant impact of these developments on global currency markets.
