The dollar is wrapping up its best month of 2025 as the world’s largest economy powers ahead and President Donald Trump inks trade deals. The Bloomberg Dollar Spot Index has risen 2.5% in July, the only positive month since President Donald Trump was sworn into office back in January.

In theory, sturdy economic growth eases pressure on the Fed to lower interest rates, since consumers and businesses appear undeterred by high borrowing costs. If growth begins to slow, the Fed could seek to lower interest rates as a means of boosting economic performance.

The International Monetary Fund says the global economy is weathering President Trump's trade policy revolution, with growth expected to reach 3 percent this year.