Dollar weakens as rate cut odds rise, tariff uncertainties linger

Dollar weakens as rate cut odds rise, tariff uncertainties linger

Source: EODHD - https://www.investing.com/news/economy-news/dollar-weakens-as-rate-cut-odds-rise-tariff-uncertainties-linger-4169129
Published: Aug 04, 2025 9:40 PM

By Ankur Banerjee and Gregor Stuart Hunter SINGAPORE (Reuters) -The U.S. dollar wavered on Tuesday as the rising odds of Federal Reserve rate cuts weighed on sentiment, while investors assessed the broader economic impact of U.S. tariffs unleashed last week. The dollar remained under pressure following Friday’s U.S. jobs report that showed cracks in the labour market, prompting traders to swiftly price in rate cuts next month. U.S. President Donald Trump’s firing of a top statistics official and the resignation of Federal Reserve Governor Adriana Kugler also exacerbated market unease, leading to a sharp dive in the dollar on Friday. The U.S. currency found its footing on Monday but was weake...

Market context: This update is relevant to AUD traders, with AUDUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.