The U.S. dollar has moved sharply as investors assess Federal Reserve policy, fiscal uncertainty and global risk sentiment. The dollar index, which tracks the currency against six major peers, fell roughly 2% over one month to its weakest level since early 2024 in the period covered by the older report, while the newer report says it rose approximately 2% from its April lows as of mid-May 2025. Cooling inflation, slower job creation, weaker consumer sentiment and expectations for a high-probability September rate cut have weighed on the dollar’s yield advantage. Conversely, renewed demand for U.S. Treasuries, relatively attractive yields and debt-ceiling and budget uncertainty have supported safe-haven demand. Nvidia’s earnings and guidance could influence risk appetite and currency flows, while Federal Reserve Chair Jerome Powell’s Jackson Hole speech is being watched for clues about the timing and pace of rate cuts beyond September. A stronger dollar can pressure emerging-market currencies, tighten global financial conditions, increase the burden of dollar-denominated debt and reduce the dollar value of U.S. multinationals’ overseas earnings, while also lowering import costs and helping contain U.S. inflation.