US Dollar Weakens; Euro Strengthens

Dollar weakened yesterday against major currencies. At 11:28 p.m. Eastern time, 26^th May, 2025, the dollar index, DXY, was down by 0.23%. Dollar is weakening because of worries over the tax and spending bill of US President Donald Trump. The bill has been passed by the House of Representatives. It has now been sent to the Senate. The bill in its current form is expected to add $3.6 trillion to the US Federal Government’s fiscal deficit, over the next 10 years. The Senate is expected to make big changes to the bill before it passes it.

Euro strengthens against the dollar

Meanwhile, Euro gained after President Trump deferred imposition of higher 50% tariffs on European imports to America till 9^th July.  At 3:00 a.m. European time it was up by 0.21% against the dollar. Buoyed by this European Central Bank President Christine Lagarde said that Euro could be a viable alternative to dollar for international trade if EU strengthens its financial and security architecture.

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Source: DXY