Dollar lingers near 3-1/2-year low as traders bet on US rate cuts

Dollar lingers near 3-1/2-year low as traders bet on US rate cuts

Source: EODHD - https://www.investing.com/news/economy-news/dollar-lingers-near-312year-low-as-traders-bet-on-us-rate-cuts-4113883
Published: Jun 26, 2025 9:40 PM

By Ankur Banerjee SINGAPORE (Reuters) -The dollar drifted on Friday, hovering near its lowest level in 3-1/2 years against the euro and sterling, as traders wagered on deeper U.S. rate cuts while awaiting trade deals ahead of a July deadline for President Donald Trump’s tariffs. Market focus this week has been on U.S. monetary policy. The prospect of Trump announcing the next Federal Reserve Chair, who is expected to be more dovish, earlier than usual to undermine the current chair Jerome Powell has raised odds of the central bank cutting rates. Powell, whose term ends in May, was also interpreted as being more dovish this week in testimony to U.S. Congress, adding to expectation of more rat...

Market context: This update is relevant to EUR traders, with EURUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.