US dollar index eases to 100.6 as trade optimism fades with softer US economic data and Fed rate cut

Services

FNO Stocks with CA Abhay

Option Trading with CA Abhay

Equity Trading with CA Abhay

Equity Investment with CA Abhay

Stock Market Masterclass

US dollar index eases to 100.6 as trade optimism fades with softer US economic data and Fed rate cut

NOOR MOHMMED

16/May/2025

The US dollar index eased to about 100.6 after early-week gains from the US-China 90-day tariff truce faded amid weak US inflation and retail sales data.
Softer economic data raised concerns about slowing consumer activity, leading traders to price in additional Federal Reserve rate cuts later in 2025.
The dollar faced pressure against several Asian currencies, notably the South Korean won, amid speculation of a strategic US move favoring a weaker dollar in trade talks.

The US dollar index softened to around 100.6 on Friday, positioning itself to close the week with little change. The early-week surge of over 1 percent driven by optimism surrounding the US-China trade truce—an agreement to significantly lower tariffs for 90 days—was tempered by weaker-than-expected economic data released throughout the week.

The tariff agreement between the world’s two largest economies initially sparked hopes of a broader trade deal, which propelled the greenback higher. However, this momentum waned as data from April revealed softening inflation and disappointing retail sales, signaling slower consumer activity than anticipated. These signs of economic slowdown led traders to increase bets on additional Federal Reserve interest rate cuts later in 2025.

Alongside these factors, the US dollar faced downward pressure against several Asian currencies, most notably the South Korean won. Market participants speculated that the US government might be strategically supporting a weaker dollar to improve competitiveness amid ongoing trade negotiations.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital,Belrise Industries, Wagons Learning.

The Current active IPO are Accretion Pharmaceuticals.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst

Services

US dollar index eases to 100.6 as trade optimism fades with softer US economic data and Fed rate cut

Related News