The US Dollar extends its decline for a third consecutive day amid ongoing concerns over the country’s fiscal outlook.

The US Dollar Index (DXY), which measures the USD’s performance against six major currencies, declined for the third straight day on Wednesday as markets grew increasingly uneasy over escalating geopolitical tensions. The greenback has already been under pressure this week due to volatile policy shifts from the Trump administration, which is facing mounting challenges both abroad and at home.

Abroad, President Trump appears to be losing influence over Israeli Prime Minister Benjamin Netanyahu. During his Middle East tour, Trump called for a renewed nuclear agreement with Iran, signaling a fresh diplomatic approach. However, CNN reported late Tuesday that Israel is considering strikes on Iranian nuclear facilities—a scenario former President Joe Biden managed to avoid, which risks unraveling Trump’s recent diplomatic efforts in the region.

Domestically, Trump faces setbacks with his proposed tax reform, dubbed the “Big Beautiful Bill.” The initiative hit a roadblock over disputes surrounding the state and local tax (SALT) deduction cap. Trump urged lawmakers not to let disagreements over SALT or proposed cuts to social programs derail the bill, but resistance remains strong from both lawmakers in high-tax states and conservative factions. According to Bloomberg, without key amendments, opposition to the bill persists, casting doubt on its passage.

Equities are under pressure, with US futures down by over 0.50%.

US 10-year Treasury yields are hovering around 4.53%, easing from the sharp surge witnessed on Monday.