After a sluggish start to the day, the US dollar (USD) maintains its stability on Thursday as investors process new tariff threats from US President Donald Trump.

A portion of this week’s gains were retraced as the greenback fell during Asian trading hours. A steep decline in Treasury yields, fueled by robust demand in Wednesday’s 10-year note auction and indications in the minutes of the June Federal Open Market Committee (FOMC) Meeting that interest rates may be cut later this year, also put pressure on it.

Following better-than-expected weekly labor data, the US Dollar Index (DXY), which compares the value of the US dollar to a basket of six major currencies, is slightly rising during US trading hours. The index recovered from a daily low of 97.27 to hover around 97.60 at the time of writing.

By posting a second wave of tariff letters on his Truth Social platform on Wednesday, President Trump intensified his trade war. With suggested import duties ranging from 20% to 30%, the latest letters targeted seven more nations, including the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, and Sri Lanka. The action has raised investor concerns about a wider global trade war and added to the increasing list of countries that could face US trade action, which has helped to boost the US dollar.

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