The US dollar kept falling to near February 2022 lows against a basket of major rivals, as traders assess the impact of US President Trumps massive tax bill and tariff deadline.

Now traders also await crucial US payrolls data for June, scheduled on Friday.

The euro fell 0.3% today to $1.1774, still near September 2021 highs, while Sterling lost 0.15% to $1.3722, away from 3-⅕ year highs.

The dollar rose 0.3% against the Japanese yen to 143.8, sending the dollar index slightly higher towards 96.744.

The first half of 2025 has been the worst for the dollar since the seventies, due to factors that include:

Political uncertainty that pushed fund managers to hedge their dollar holdings

Reduced long-term buy positions on the dollar

Increasing bets that the Fed will start easing monetary policies this year.

US President Donald Trumps recent tax bill raised concerns about the financial stability of America, with ongoing uncertainty as well about US trade deals.

Investors are now betting on a faster pace of Fed rate cuts this year, while waiting for crucial US data this week, including the payrolls report on Friday.

Trump continued to pressure the Federal Reserve to cut interest rates, and sent Fed Chair Powell a list of interest rates by global central banks, saying that US rates should be between the 0.5% Japanese rate and the 1.75% Danish rate.

US Rates

Investors interpreted Fed Chair Jerome Powells last week Congressional testimony as leaning cautious, after saying that rate cuts are likely if inflation doesnt rise this summer in response to tariffs.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in July stood at 20%.

The odds of such a cut in September stood at a much better 93%.