The greenback rallied on Thursday after stronger than expected US jobs data pushed out the timing for potential rate cuts by the Federal Reserve.

The Dollar index, which tracks the greenback against major peers, is headed for a second-straight weekly decline.

The Republican-controlled House of Representatives narrowly passed Trump's "One, Big, Beautiful Bill" of spending and tax cuts that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt. Trump is expected to sign the bill into law on Friday.

With the US closed for Independence Day, attention turns to Trump's July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements.

"The dynamic is raising questions about fiscal sustainability and bond market stability," said Kyle Rodda, Senior Financial Markets Analyst at Capital.com, referring to the bill's passage.

"However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further US trade deals."

Cumulative percent change year to date in foreign currency value against the US Dollar.

The Dollar index had its worst first half since 1973 as Trump's chaotic roll out of sweeping tariffs stoked concerns about the US economy and the safety of Treasuries.

The US currency sank to the lowest in more than three years against the Euro and British Pound earlier in the week.

--Reuters--