US Dollar Gains Slightly as Durable Goods Orders Ease Concerns

US Dollar Gains Slightly as Durable Goods Orders Ease Concerns

The US Dollar (USD) posted modest gains on Tuesday, ending its multi-day losing streak as markets reacted positively to less negative-than-expected U.S. durable goods orders. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, rose to around 99.30 during the European and early North American trading hours.

The initial upward momentum came after the Japanese Ministry of Finance suggested possible reductions in its bond issuance, leading to a decline in Japanese bond yields and weakening the Japanese Yen (JPY). This provided an indirect boost to the USD across several pairs.

Adding to the Greenback's support were comments from Federal Reserve official Neel Kashkari, who reiterated the Fed’s intention to keep interest rates steady amid continued trade and tariff uncertainty. He emphasized that trade negotiations could take months or years, warning against premature expectations of resolution.

As markets reopened after the Memorial Day weekend in the U.S., attention turned to key economic releases. April’s Durable Goods Orders and the Dallas Fed Manufacturing Index for May were in focus, offering fresh insights into how the U.S. economy is faring under ongoing global trade tensions.

While optimism remains over a potential U.S.-EU trade agreement, short-term USD strength appears tied to a mix of safe-haven flows, central bank communication, and improving domestic data.