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12.06.202511:10:57UTC+00Dollar Hits 2022-Lows

The dollar index continued its downward slide on Thursday, dropping below 97.8 and reaching its lowest point since 2022. This decline was primarily driven by renewed trade tensions and geopolitical uncertainties impacting market sentiment. President Trump announced intentions to send formal letters to key trading partners within the upcoming one to two weeks. These letters will outline unilateral tariff actions designed to pressure countries into negotiating new trade agreements. This announcement comes as the existing 90-day suspension on reciprocal tariffs is scheduled to end next month. Additionally, market concerns were heightened by escalating geopolitical tensions, with Iran issuing threats to target U.S. bases if nuclear negotiations fail. Meanwhile, U.S. inflation data released on Wednesday was softer than anticipated, adding further downward pressure on the dollar. This weaker inflation report reinforced expectations that the Federal Reserve might implement two interest rate cuts this year. Consequently, the dollar experienced its most significant losses against the euro, Swiss franc, and Japanese yen.

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