From Yahoo Finance: 2025-06-12 12:15:00

The dollar hit a three-year low as Trump’s trade threats and economic worries prompted investors to abandon it. The FTSE 100 reached a record high, with the dollar losing 10% against other currencies this year. Speculation of interest rate cuts and a weakening jobs market added to the dollar’s decline.

India and the US faced trade tensions over tariffs on steel, aluminum, and pharmaceuticals. Talks between the two countries were at a standstill, with India potentially retaliating against US imports if negotiations fail. The US was expected to cut tariffs on British cars, boosting UK trade.

The UK economy shrank by 0.3% in April, raising concerns about a potential interest rate cut by the Bank of England. The pound’s rise against the dollar was hindered by economic uncertainties. Analysts attributed the dollar’s decline to doubts about US economic growth and escalating government debts under Trump. Investors are turning away from the US dollar due to concerns about an economic slowdown and increasing government debts, according to analysts. This shift is impacting the currency’s performance in the market.

Read more: Dollar slides to three-year low while FTSE 100 hits record high