English
US Dollar Falls Amid Legal Uncertainty Over Trump’s Tariff Policies
US Dollar Drops as Markets Eye Legal Ruling on Trump-Era Tariffs
The US dollar weakened significantly on Thursday, May 29, 2025, after briefly climbing earlier in the day. The drop came as global markets reacted to the growing uncertainty surrounding the legal battle over Trump’s tariff policies.
Trade Court Decision Shakes Investor Confidence
The U.S. Court of International Trade ruled to strike down most of the sweeping tariffs imposed during former President Donald Trump’s administration. The court ordered the Commerce Department to re-evaluate these policies within ten days.
The Biden administration responded quickly, filing for an appeal and signaling it may take the issue to the Supreme Court to suspend the ruling.
Dollar Weakens Against Major Currencies
As a result of the legal uncertainty, the dollar exchange rate shifted notably:
The euro rose 0.5% to $1.1349
The dollar dropped to 144.42 yen against the Japanese yen
It fell 0.42% against the Swiss franc, reaching 0.824
These moves reflect how sensitive the forex market is to shifts in US economic policy and legal developments.
Weak Economic Data Adds Pressure on the Dollar
The dollar also faced pressure from disappointing economic indicators:
The US economy contracted by 0.2% in Q1
Weekly jobless claims increased more than expected
These signs of weakness fueled concerns of a potential economic slowdown, prompting investors to seek safer currencies.
Debt and Fiscal Policy Also Under the Spotlight
At the same time, investors are watching Congressional discussions around a new tax and spending bill that could add trillions to the federal deficit in the coming decade—raising fresh concerns about long-term pressure on the US dollar.
