The US dollar rose slightly on July 24, showing a V-shaped movement as it tracked international oil price fluctuations amid evolving US-Iran tensions. The euro ultimately turned lower as crude oil pared losses and President Donald Trump threatened tariffs on the European Union. According to Yonhap Infomax, the USD-JPY exchange rate stood at 163.855 yen as of 4 p.m. Eastern Time on July 24, up 0.031 yen (0.019%) from the previous New York close of 163.824 yen, while the EUR-USD rate fell to 1.13700 USD, down 0.00094 USD (0.083%).
USD-JPY Rises Despite US Treasury BOJ Rate Hike Remarks
The USD-JPY exchange rate rose to 163.855 yen on July 24, up 0.031 yen (0.019%) from the previous session's close of 163.824 yen. The US Treasury expressed concern over excessive exchange rate volatility the previous day and hinted at the necessity of a Bank of Japan (BOJ) policy rate hike, though the yen saw limited impact from these remarks. Thierry Wizman, global FX and rates strategist at Macquarie Group, stated that the yen's rise in the current environment is unsurprising, noting that the yen is a low-interest-rate currency facing terms-of-trade shocks from rising oil prices. He added that in such an environment, if speculative investors target any currency, it would be the yen.
EUR-USD Falls on Trump EU Tariff Threat and ECB Policy Stance
The EUR-USD exchange rate fell to 1.13700 USD on July 24, down 0.00094 USD (0.083%) from the previous close. Philip Lane, chief economist of the European Central Bank (ECB), stated that monetary policy is not at a "red alert" level requiring swift action as it was in 2022. The euro faced additional downward pressure as President Trump threatened to impose "substantial tariffs in the near future" on the European Union in retaliation for fines imposed on US Big Tech companies.
Dollar Index Reverses Course Amid Oil Price Volatility and Geopolitical Developments
The dollar index (DXY), which reflects the dollar's value against six major currencies, rose to 101.476 on July 24, up 0.039 points (0.038%) from the previous session. The dollar faced downward pressure during the New York session following a Reuters report that Pakistan, with China's support, is pursuing renewed talks between the US and Iran. Pakistan discussed the matter exploratory-level when Iranian Interior Minister Eskandar Momeni visited Islamabad this week. Following this report, West Texas Intermediate (WTI) crude for September delivery fell to 87.71 USD per barrel, and the dollar index dropped to an intraday low of 101.291. However, a New York Times report that President Trump was discussing with key cabinet members whether to intensify military attacks on Iran reignited market caution. WTI September futures ultimately pared losses to close at 89.31 USD, down 3.12% from the previous session. The dollar index turned slightly higher against the euro as Trump's EU tariff threat added further pressure.
JPMorgan Forecasts Fed Rate Hold with Hawkish Dissents
Michael Feroli, chief US economist at JPMorgan, stated in a report that the Federal Reserve is expected to hold interest rates at next week's meeting, but noted that "some members are losing patience with inflation above target" and forecast at least two hawkish dissents. The GBP-USD exchange rate rose to 1.33220 USD on July 24, up 0.00040 USD (0.030%) from the previous close. The offshore USD-CNY exchange rate fell to 6.7719 yuan, down 0.0061 yuan (0.090%).
FAQ
What did the US dollar do on July 24?
The US dollar rose slightly on July 24, showing a V-shaped movement as it tracked international oil price fluctuations amid US-Iran tensions. The dollar index (DXY) rose to 101.476, up 0.039 points (0.038%) from the previous session.
Why did the EUR-USD exchange rate fall on July 24?
The EUR-USD exchange rate fell to 1.13700 USD on July 24, down 0.00094 USD (0.083%), as crude oil pared losses and President Trump threatened to impose substantial tariffs on the European Union in retaliation for fines on US Big Tech companies.
What caused the dollar index to reverse course during the July 24 session?
The dollar index initially fell to 101.291 following a Reuters report that Pakistan is mediating US-Iran talks with China's support, but reversed higher after a New York Times report that President Trump was discussing intensified military action against Iran with key cabinet members, combined with Trump's EU tariff threat.
