06.01.202616:01:38UTC+00Dollar Appreciates to Over 2-Week High

The dollar index advanced to 98.5 on Tuesday, marking its highest level in over two weeks, as market participants turned their attention to a series of significant US economic data releases. Recent reports have indicated a possible deceleration in economic activity. The ISM Manufacturing PMI fell short of expectations, highlighting the steepest downturn in the manufacturing sector since 2024. Concurrently, the S&P Global Services PMI was revised downward, suggesting additional fragility in the services industry. Richmond Fed President Barkin mentioned that future monetary policy will demand "finely tuned judgments," while Governor Miran commented that the Federal Reserve might need to implement interest rate cuts exceeding 50 basis points by 2026. Currently, financial markets are anticipating two quarter-point rate reductions from the Fed this year. The dollar gained primarily against the Swiss franc and the euro, although the euro received some support from inflation figures in Germany and France that were lower than anticipated.