The dollar weakened near a three-year low as President Trump’s criticism of Fed Chair Powell undermined investor confidence. Concerns arose about potential actions to replace Powell, triggering fears of a dollar panic. Escalating trade tensions with China further fueled economic anxiety, contributing to the dollar’s decline against major currencies like the euro and Swiss franc.
US inflation tops 4% for first time in three years, keeping Fed hike in play
US inflation climbed to 4.1% in May, driven by rising energy prices, keeping the Federal Reserve’s interest rate hike plans on the table for September.
June 25, 2026