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>>US Dollar Index Slides Below 98.00 as Heavy Tariff Uncertainty Pressures Markets

US Dollar Index Slides Below 98.00 as Heavy Tariff Uncertainty Pressures Markets

crypthub

about 6 hours ago

Index Breaks Key Level

The US Dollar Index slipped below 98.00, trading around 97.85, its lowest in weeks. Technical analysis shows a “death cross” as the 50‑day average fell under the 200‑day line, and the RSI entered oversold territory. Higher trading volumes suggest strong institutional participation in the decline.

Tariff Uncertainty Drives Weakness

Escalating doubts over global trade tariffs are the main catalyst for the dollar’s slide. Proposed US legislation and vague trade statements have heightened fears of supply‑chain disruption and inflationary pressure. Investors are shifting away from the dollar, seeking alternatives amid the policy haze.

Fed Policy Dilemma

The Fed faces a tougher stance as tariff risks combine slower growth with persistent inflation. A weaker dollar could aid exports, but rising import costs may force tighter monetary policy. Market participants closely watch Fed speeches for clues on how trade developments will affect rate decisions.

Market Ripple Effects

A softer dollar lifts commodity prices such as gold, while US multinationals confront earnings translation pressures. Emerging‑market currencies benefit from reduced dollar‑denominated debt burdens. The Euro’s strong weight and safe‑haven inflows to the yen and franc further reinforce the index’s bearish move.