From Yahoo Finance: 2025-06-02 20:58:00

The U.S. dollar rebounded from a six-week low against the euro amid concerns over the trade war. The dollar was up 0.9% against the yen, while the euro fell 0.6% to $1.1371. Data showed euro zone inflation slowing, fueling expectations for a rate cut this week. The dollar is down 9% against the euro for the year.

Global equity markets have recovered from April’s selloff, but the dollar remains pressured. U.S. duties on steel and aluminum will double to 50% on Wednesday. Trump and Xi Jinping are expected to have a call soon to discuss trade differences. Trade developments are crucial, with reports suggesting China gaining leverage over the U.S.

U.S. job openings increased in April, but layoffs rose amid a slowing labor market and economic outlook due to tariffs. Federal Reserve officials urge caution on monetary policy as Trump’s trade war injects uncertainty. Fiscal worries have led to a “sell America” theme, with dollar assets dropping.

Senate considers a tax cut and spending bill adding $3.8 trillion to the $36.2 trillion federal debt. Foreign exchange options market traders anticipate further weakening of the U.S. currency. The British pound dipped 0.2% to $1.3519. Bitcoin rose 1.2% to $106,219.

Read more: Dollar pulls back from six-week low but tariff tensions persist