{"id":17755,"date":"2025-03-05T06:49:50","date_gmt":"2025-03-05T06:49:50","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=17755"},"modified":"2025-03-05T06:49:50","modified_gmt":"2025-03-05T06:49:50","slug":"us-dollar-index-slides-on-tariff-rollout","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/us-dollar-index-slides-on-tariff-rollout\/","title":{"rendered":"US Dollar Index Slides on Tariff Rollout"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx_-64-1024x559.png\" alt=\"\" class=\"wp-image-17756\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDX<strong> fell 0.82%<\/strong>, closing at <strong>105.551<\/strong>, marking its lowest level in nearly a week.<\/li>\n\n\n\n<li><strong>Tariff tensions failed to drive dollar demand<\/strong>, as traders weighed economic risks from new US trade policies.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The <strong>US Dollar Index (USDX)<\/strong> extended its slide on <strong>Wednesday<\/strong>, dropping <strong>0.82%<\/strong> to <strong>105.551<\/strong>, as investors reassessed the impact of US <strong>tariffs on China, Mexico, and Canada<\/strong>. The <strong>dollar weakened despite ongoing trade war threats<\/strong>, with <strong>broad-based selling pressure<\/strong> seen across major currencies.<\/p>\n\n\n\n<p>The <strong>greenback dropped from an intraday high of 106.424 to a low of 105.454<\/strong>, marking its steepest decline since late February. This contrasts with initial expectations that US <strong>tariff escalation would trigger safe-haven demand for the dollar<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The dollar slid Tuesday as concerns about the economic fallout of the US-sparked trade war pulled down Treasury yields and sent stock prices tumbling, driving investors into overseas havens <a href=\"https:\/\/t.co\/3VBjMMacB9\">https:\/\/t.co\/3VBjMMacB9<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1896970057877496136?ref_src=twsrc%5Etfw\">March 4, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Tariff Uncertainty Weighs on the Dollar<\/h2>\n\n\n\n<p>US <strong><a href=\"https:\/\/t.co\/ynpmBnymx0\">President Donald Trump reaffirmed his plans for reciprocal tariffs<\/a><\/strong> in a speech to Congress, vowing <strong>a further escalation by April 2<\/strong> if trade partners do not comply with new US policies. However, the market reaction was mixed.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/t.co\/MCvNlDyXRY\">Traders moved away from the dollar<\/a><\/strong> as concerns about <strong>slower US growth<\/strong> and <strong>inflation risks<\/strong> took precedence. <strong>China\u2019s <\/strong><strong><a href=\"https:\/\/t.co\/IVSPNKwIH5\">immediate retaliation<\/a><\/strong> and <strong>Canada\u2019s planned countermeasures<\/strong> added uncertainty, raising the risk of <strong>weaker global trade flows<\/strong>.<\/p>\n\n\n\n<p>Instead of strengthening, <strong>USDX saw broad selling pressure, pushing it near 105.45 support<\/strong>. This suggests that traders <strong>are pricing in economic risks rather than seeking the dollar as a safe-haven asset<\/strong>.<\/p>\n\n\n\n<p>Beyond tariff concerns, the dollar was also pressured by <strong>soft economic data. <\/strong><strong><a href=\"https:\/\/www.reuters.com\/markets\/us\/us-manufacturing-stable-february-storm-brewing-tariffs-2025-03-03\/\">US factory gate prices<\/a><\/strong> surged to a <strong>three-year high<\/strong>, increasing inflation worries. <strong><a href=\"https:\/\/t.co\/tHvNPhvwNR\">Supply chain disruptions<\/a><\/strong><strong> from tariffs<\/strong> could further pressure production costs, limiting Fed flexibility.<\/p>\n\n\n\n<p>The <strong>weaker dollar reflects growing expectations for Fed rate cuts<\/strong>, with traders now <strong>pricing in a 60% chance of easing by July<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">More Downside for USDX?<\/h2>\n\n\n\n<p>The <strong>US Dollar Index (USDX) extended its decline<\/strong>, falling below <strong>106.00<\/strong>, confirming a <strong>bearish trend<\/strong>. With <strong>105.45 now acting as key support<\/strong>, traders are closely watching whether the dollar can stabilize or if further downside is ahead. A <strong>break below 105.45<\/strong> could open the door for a deeper drop toward <strong>105.00<\/strong>, reinforcing the current downtrend.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-4-1024x442.jpg\" alt=\"\" class=\"wp-image-17757\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDX shows a marked downtrend, with moving averages suggesting bearish momentum, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WAhttps:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>Technical indicators support this bearish outlook, as the <strong>MACD signals strong downside momentum<\/strong>, suggesting that <strong>sellers remain in control<\/strong>. Unless a shift in sentiment emerges, the dollar may continue facing pressure, with traders awaiting upcoming economic data for potential market catalysts.<\/p>\n\n\n\n<p>For now, the <strong>US dollar is struggling to find support<\/strong> as investors weigh the impact of trade policies and shifting Fed expectations. If tariff tensions <strong>fail to boost safe-haven flows<\/strong>, USDX <strong>may continue its downward trajectory<\/strong> in the coming sessions.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US Dollar Index (DXY) drops to 105.55 as tariff uncertainty and weak data fuel rate cut bets. More downside risk ahead. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":17756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9],"class_list":["post-17755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/17755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=17755"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/17755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17756"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=17755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=17755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=17755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}