Dollar heads for fifth straight month of decline

The US dollar wobbled today, heading for its fifth straight month of decline, as traders anticipated further uncertainty regarding trade policy and the strength of US financial conditions, while awaiting key inflation reports later in the day.

The US currency had a volatile week, closing lower in the previous session after a federal court temporarily reinstated President Donald Trump’s largest tariffs, just one day after a trade court ordered them immediately halted.

Trump expressed hope yesterday that the Supreme Court would overturn the trade court’s decision, while officials indicated the possibility of using other presidential powers to ensure the tariffs remain in place.

Uncertainty over the tariffs has gripped markets, prompting investors to avoid US assets in search of alternatives, amid concerns that Trump’s erratic policies could undermine market strength.