The U.S. dollar slipped as investors grew more confident that the Federal Reserve will cut interest rates in the near future and as uncertainty persisted over newly announced U.S. tariffs.
After a weaker-than-expected U.S. jobs report, traders quickly increased the odds of a September rate cut to about 94.4%, reflecting a rapid reassessment of monetary policy expectations.
Market worries were heightened by political and institutional developments, including the president’s dismissal of a senior statistics official and the resignation of Federal Reserve Governor Adriana Kugler, which together added to uncertainty about economic policy and data integrity.