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2025.05.1410:03:28UTC+00Dollar Extends Decline

The dollar index declined to 100.3 on Wednesday, further pulling back from the peak it had reached on Monday. This follows the diminishing impact of the rally that was initially supported by the easing of US-China tariffs. Market participants have started refocusing on the broader consequences of trade policies on the United States economy. In addition, an inflation report that came in below expectations has increased speculation that the Federal Reserve might have the flexibility to implement two interest rate cuts this year. The dollar experienced widespread weakening, with significant drops noted against both the yen and the euro. Notably, the dollar also decreased by over 1.5% against the South Korean won, after reports emerged regarding discussions between South Korean and US authorities about the won/dollar market on May 5th.

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