Today on Monday (June 27), the US dollar opened at 104.12, and closed at 104.12 yesterday. So far, the highest has hit 104.14 and the lowest has been 103.95. Temporarily reported 104.00, down 0.12%. The euro and the dollar were temporarily reported at 1.0559, an increase of 0.09%; the dollar and the Canadian dollar were temporarily reported at 1.2902, an increase of 0.06%.
In early Asian trading on June 27, the U.S. dollar index was trading around 104.10, as traders scaled back bets on a possible peak in interest rates and advanced expectations for the timing of interest rate cuts in response to a possible recession. U.S. federal funds futures priced in on Friday, with a 73 percent chance of a 75-basis-point rate hike at the July meeting .
US stocks closed, the Dow Jones Industrial Average rose 2.68% to 31500.68 on Friday; the S&P 500 rose 3.06% to 3911.74; the Nasdaq rose 3.34% to 11607.62.
The U.S. current account deficit has steadily improved since 2005, but after 2020, the global trade landscape has been upended by the outbreak. According to a report released by the U.S. Department of Commerce on June 23, as of the end of the first quarter of 2022, the U.S. current account deficit has widened to $291.4 billion from about $100 billion at the end of 2019. Currently, the U.S. current account deficit stands at 4.8% of U.S. gross domestic product ( GDP ), the same proportion as during a period of rapid dollar depreciation.
Treasury holdings by the Fed on behalf of foreign central banks and sovereign wealth funds have shrunk from $3.13 trillion at the start of 2021 to a recent $2.99 ​​trillion. Likewise, despite its modest size, it is worrisome to see a decline instead of an increase.
The most worrying thing is that the dollar’s status as the world’s main reserve currency is declining. The U.S. dollar accounts for 58.8% of global foreign exchange reserves , according to the International Monetary Fund ( IMF ) , which is well below a peak of 72.7% in 2001 and the lowest percentage since 1996.
Gold prices will rise as the dollar loses its status as the world’s reserve currency , Kaiser Research Online founder John Kaiser said at the PDAC 2022 conference in Toronto on June 26 .
U.S. federal funds futures priced in on Friday, with a 73 percent chance of a 75-basis-point rate hike at the July meeting. But for September, the market has fully priced in a rate hike of just 50 basis points. In late New York trade, the dollar index fell 0.2 percent to 104.013.