Dollar slides on easing trade tensions, Fed expectations

June 12, 2025

The dollar weakened due to Trump’s potential shift in tariff talks and expectations of Federal Reserve rate cuts. The euro reached a seven-week high. Sterling rose, while the Australian and New Zealand dollars saw slight increases. U.S. consumer prices rose less than expected in May. A fragile truce in the U.S.-China trade war was restored after talks in London.

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