Dollar holds firm against euro, yen as US trade pressure mounts
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The dollar held gains on Friday after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States.The greenback rallied from multi-year lows against the euro and British pound hit earlier in the week after stronger than expected U.S. jobs data pushed out the timing for potential rate cuts by the Federal Reserve.New Zealand's kiwi dollar, a common proxy for risk appetite, rose 0.2% to $0.608 after U.S. stocks climbed to new record levels.The Republican-controlled House of Representatives narrowly passed Trump's "One, Big, Beautiful Bill" of spending and tax cuts that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt.With the U.S. closed for Independence Day, attention turns to Trump's July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements."The dynamic is raising questions about fiscal sustainability and bond market stability," said Kyle Rodda, senior financial markets analyst at Capital.com, referring to the bill's passage."However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further U.S. trade deals."The dollar index, which tracks the greenback against major peers, had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs stoked concerns about the U.S. economy and the safety of Treasuries.Trump said the U.S. will start sending letters to countries on Friday specifying what tariff rates they will face, a shift from earlier pledges to ink individual deals.Against the yen the dollar was traded at 144.69 yen, down 0.2% from late in the U.S. trading day when it surged 0.8%. The euro added 0.1% to $1.1769, while sterling traded at $1.3668, up 0.1%.The Australian dollar fetched $0.6577, up 0.1% in early trade.U.S. Labor Department's closely watch employment report on Thursday showed that nonfarm payrolls increased by 147,000 jobs in June, well ahead of economists' forecast in a Reuters poll for a rise of 110,000.Market expectations that the Fed will leave rates unchanged at its July meeting rose to a 95.3% probability, up from 76.2% previously, according to the CME's Fedwatch tool.Economists continue to expect the Fed would not start cutting rates again until September or even later.
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Business Standard
22 minutes ago
- Business Standard
Democrats see Trump's big bill as key to comeback. But it won't be easy
It is big and it is beautiful, says President Donald Trump. But for many Democratic leaders, the tax break and spending cut package adopted by Trump's Republican allies in Congress Thursday represents the key to the Democratic Party's resurgence. Even before the final vote was tallied, Democratic officials were finalising ambitious plans for rallies, voter registration drives, attack ads, bus tours and even a multiday vigil all designed to highlight the most controversial elements of Trump's big beautiful bill: the deep cuts to the nation's safety net that will leave nearly 12 million more Americans without health coverage and millions of others without food assistance, according to the nonpartisan Congressional Budget Office. Indeed, in political battlegrounds across Alaska and Iowa, Pennsylvania and California, Democrats have already begun to use Trump's bill to bludgeon their Republican rivals. Democrats are promising that the package Trump's biggest domestic policy achievement to date will be the defining issue of every major election between now and next fall's high-stakes midterms. One thing is abundantly clear: Republicans own this mess and it's an albatross around their necks heading into the midterms, Democratic National Committee Chair Ken Martin told The Associated Press. This is the least popular legislation in modern history, and the more voters learn about it, the more they hate it. That's a clear directive for Democrats -- we're going to make sure every single voter knows who is responsible. Even with early public opinion on their side, however, it's far from certain that the Republican budget bill will be the political winner Democrats hope. The Democratic brand remains deeply unpopular, the party has no clear leader, its message is muddled and core elements of the Democratic base are frustrated and drifting. Some of the bill's changes won't take effect until after the 2026 midterms, so voters may not have felt the full impact by the time they vote. At the same time, it's unclear how many voters are paying attention to the Washington-based debate. The Democratic super PAC Priorities USA warned this week that Democrats must work harder if they want their message to break through the polarised media environment. We can't just assume that because we're angry that the voters that we need to communicate with are angry. Everyone needs to step up and realise the enormous challenge that's in front of us, Executive Director Danielle Butterfield said. We're nowhere near a good starting place. At its core, the bill's priority is USD 4.5 trillion in tax breaks enacted in Trump's first term that would expire if Congress failed to act, along with new ones. This includes allowing workers to deduct tips and overtime pay. The package includes USD 1.2 trillion in cutbacks to Medicaid and food stamps and a massive rollback of green energy investments. The nonpartisan Congressional Budget Office estimates the package will add USD 3.3 trillion to the deficit over the decade. Democrats in Congress were united against the bill, and even some Republicans expressed concerns. But ultimately, Trump persuaded the conservative holdouts to fall in line. Democrats' challenge on display Privately, some Democrats conceded that Republicans were smart to pass the bill on the eve of a holiday weekend when fewer voters would be paying attention. And as some Democrats in Washington predicted a fierce political backlash across America, the response was somewhat muted Thursday at a Democratic event in Iowa, barely 10 miles from the Iowa State Fairgrounds where Trump later drew thousands for an evening rally. An audience of roughly 100 people listened as local Democratic officials railed against the legislation and called on voters to oust Republican Rep. Zach Nunn, the local congressman, for supporting it. Audience member Michael Rieck, 69, said Iowa Democrats left him a message about the rally, but when he went online to learn more, there was nothing. I texted back to them that I didn't see any advertisement, he said. They slowly corrected that. I'm still not impressed with what they did to advertise this event. Rieck said he wants to see different factions of the party better coordinate their message. Meanwhile, progressive activists were moving through Minnesota in a big green bus as part of Fair Share America's 29-stop stop the billionaire giveaway tour. The group is focused on Republican-led congressional districts where elected officials have largely stopped having in-person town halls with constituents. Fair Share Executive Director Kristen Crowell said the crowds, even some Trump supporters, have been receptive. Still, she acknowledged many people don't know what's in the bill. We know we're fighting upstream, she said. But when people hear exactly what's in this bill, they're adamantly opposed. I mean, I can tell you, in 17 stops, I've not had one person come up to me and say, You are on the wrong side of this.' What the polls say The GOP's bill is generally unpopular, according to polling conducted throughout the month of June, although some individual provisions are popular. For example, a Washington Post/Ipsos poll found that majorities of US adults support increasing the annual child tax credit and eliminating taxes on earnings from tips, and about half support work requirements for some adults who receive Medicaid. On the other hand, the poll found that majorities oppose reducing federal funding for food assistance to low-income families and spending about USD 45 billion to build and maintain migrant detention centers. The price tag could be a sticking point. About 6 in 10 US adults in the poll said it was unacceptable that the bill is expected to increase the US national debt, currently at USD 36 trillion, by about USD 3 trillion over the next decade. But polling indicates that most Americans aren't paying attention to the nuances of the bill, either. The Washington Post/Ipsos poll found that only about one-third of US adults have heard a great deal or a good amount about it. Democrats are planning a summer of organising The Democratic National Committee and its allies plan an organising summer that will feature town halls, training and voter registration drives in at least 35 competitive congressional districts. The message will be focused heavily on Trump's bill. Democratic groups also are expected to unveil a new round of digital attack ads targeting vulnerable Republicans in the coming days. Kansas Gov. Laura Kelly, who leads the Democratic Governors Association, said her party must keep the bill's contents at the forefront of people's minds to ensure it's an issue in the 2026 midterm elections and even the next presidential election in 2028. We'll just have to keep that on the radar, she said. Meanwhile, progressive groups are planning a Family First day of action for July 26 in all 50 states. They'll highlight vulnerable Americans hurt by the new Medicaid cuts and hold a 60-hour vigil at the US Capitol. Because people call Medicaid something different in every state, a lot of people didn't realise until this very moment that their health care was at stake, said one of the Family First organizers, Ai-jen Poo, president of the National Domestic Workers Alliance. We have made a promise to each other and to future generations that there will be a safety net in place when we need it. And this is what's being ripped away. And people will not stand for it.
Time of India
22 minutes ago
- Time of India
Rio to host BRICS summit wary of Donald Trump; China's Jinping to be absent
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Business Standard
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Trump to start sending tariff letters Friday; global duties begin August 1
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