Greenback Crumbles to New Lows | Trump Announces New Sanctions Against Iran
Published June 25, 2019
The US Dollar Index was trading lower this morning, at 95.98 levels, as all eyes remain on Powell’s speech for fresh insights on the US interest rate outlook. Fed Chairman Jerome Powell will speak on the economic outlook in New York at 1:00pm ET today.
The Canadian dollar rose 0.17 percent on Tuesday, at 1.3158 against the greenback, on the back of upbeat wholesales data from Canada and rising crude oil prices. Additionally, comments from Chinese lawmakers rekindled expectations of positive trade talks between the US and China at the sidelines of the G20.
US President Donald Trump signed an executive order on Monday imposing fresh sanctions on Iran amid increased tensions between the two nations. Trump said these hard hitting sanctions will deny Iran’s Supreme Leader Ayatollah Ali Khamenei, his office, and many others access to financial instruments.
The Federal Reserve’s Dallas president, Robert Kaplan, said that a rate cut now may fuel imbalances in the economy which could prove difficult and painful to manage. Kaplan further stated that trade tensions and uncertainty have deteriorated significantly over the past two months.