The US dollar is facing further declines, affected by concerns about policy credibility and the prospect of interest rate cuts.

Nicolas Jullien of Candriam stated in a report that, given concerns about the credibility of US policies and the risk of larger Fed interest rate cuts, the US dollar may continue to weaken. He said that even though the US economy remains strong, "concerns about policy credibility and governance could lead to a temporary softening of the US dollar." When excessively loose policies become a practical possibility, the upside potential of the US dollar will also be more limited. He mentioned that the uncertainty of the inflation path, along with the risk of widening short-term and long-term US Treasury yield spreads, is a disadvantageous combination for the US dollar. The DXY US dollar index fell 0.2% to 98.598.