The U.S. dollar achieved its highest value against the euro during the past month because Washington led multiple trade agreements. The U.S. and European Union signed a major agreement on Sunday which included a 15% tariff on EU imports and European promises to invest $600 billion in the United States. The U.S. achieved a $550 billion trade agreement with Japan during the previous week.
The euro reached its lowest point at $1.1538 since June 23 after experiencing its biggest one-day decline in more than two months. The dollar index reached its highest point in one month at 98.98 after increasing 0.37%.
Markets expect no interest rate adjustments from the Federal Reserve during its upcoming decision on Wednesday. The potential disagreement among board members continues to pose a threat to market stability. The 10-year note yield decreased by 6.2 basis points while Treasury yields dropped.
The U.S.-China trade tensions continue to exist despite the five-hour Stockholm meeting which demonstrated efforts to reduce tensions. The EU-U.S. agreement faces increasing criticism from European leaders who warn about potential economic damage. The dollar’s recovery receives support from analysts who believe the elimination of extreme trade risks.
