Key Facts
• July 25: Dollar rose against major currencies in the New York forex market.
• U.S. Dollar Index increased 0.2% to 97.663 by the end of trading.
• USD/JPY closed at 147.66/147.68, up 0.4%, but fell 0.9% weekly.
• EUR/USD remained flat at 1.1740/1.1744, with a weekly rise of about 1%.
• Strong U.S. economic data supports the Federal Reserve’s cautious stance on rate cuts.
• Federal Reserve and Bank of Japan to hold policy meetings next week, likely maintaining rates.
• Political pressure from former President Trump for rate cuts limits dollar gains.
• Tariff negotiation uncertainties eased, contributing to dollar strength.
Summary
The U.S. dollar strengthened against major currencies in the New York forex market on July 25, driven by robust U.S. economic data and reduced uncertainties surrounding tariff negotiations. The Dollar Index rose 0.2% to 97.663, while USD/JPY increased 0.4% to 147.66/147.68, despite a 0.9% weekly decline. EUR/USD remained stable at 1.1740/1.1744, with a weekly gain of about 1%. Analysts attribute the dollar’s recovery to the Federal Reserve’s cautious approach to rate cuts, supported by strong economic indicators. Upcoming policy meetings by the Federal Reserve and Bank of Japan are expected to maintain current rates, with market focus on post-meeting statements. However, political pressure from former President Trump for rate cuts continues to cap the dollar’s upward momentum.
