Key Facts
• On July 31, the dollar rose against major currencies in the NY forex market.
• Dollar/Yen hit 150.765, the highest since late May, up 0.83% by session end.
• Monthly dollar gain against yen reached 5%, the largest since December 2024.
• Bank of Japan kept interest rates unchanged in its July 30–31 meeting.
• BOJ raised its 2025 inflation forecast due to rising food prices.
• U.S. Federal Reserve maintained rates in its July 29–30 FOMC meeting.
• Two Fed members proposed a 0.25% rate cut, but the decision was not unanimous.
• Fed Chair Powell emphasized no rush for rate cuts despite political pressure.
• Dollar index rose 0.16% to 99.949 by the end of trading.
• Euro/Dollar ended at 1.1412, down 3% against the dollar for the month.
• Trump administration imposed a 40% tariff on Brazil, raising total to 50%.
• U.S.-Mexico trade agreement extended by 90 days for further negotiations.
Summary
The U.S. dollar strengthened in the New York forex market on July 31, reaching 150.765 yen, its highest level since May, supported by a robust U.S. economy and the Federal Reserve’s hawkish stance. The Bank of Japan maintained its interest rates but raised its 2025 inflation forecast due to rising food prices. Meanwhile, the Federal Reserve also kept rates steady, with Chair Powell signaling no urgency for rate cuts despite political pressure. The dollar index rose 0.16%, while the euro fell 3% against the dollar for the month. Trade tensions persisted as the Trump administration increased tariffs on Brazil and extended a trade agreement with Mexico for further negotiations.
