The US Dollar Index (DXY) declined to approximately 102.70 during Thursday’s early European trading session, reflecting a weakening US Dollar amid concerns of a potential US recession. Federal Reserve officials have expressed caution regarding persistent inflation, as indicated in the Federal Open Market Committee (FOMC) minutes. The DXY, which measures the USD’s value against a basket of six major currencies, has experienced negative performance for the third consecutive day, currently trading near 102.70, a 0.28% decrease. Market participants are awaiting the release of the US March Consumer Price Index (CPI) and weekly Initial Jobless Claims reports later today. The USD’s decline follows increased trade tensions initiated by former US President Donald Trump against China, despite a temporary 90-day tariff pause on other nations. Analysts suggest reduced investor confidence in the US government due to concerns of a potential recession, equity market downturn, and early signs of a financial crisis. The Federal Reserve’s March meeting minutes revealed acknowledgements of potentially persistent inflation and uncertainties surrounding trade tariffs, raising concerns about a possible economic downturn. Minneapolis Fed President Neel Kashkari cautioned that continued economic uncertainty could precipitate a US recession.
