Dollar index falls to 3-1/4 year low due to trade uncertainties and weak data.

From Yahoo Finance: 2025-06-30 15:32:00

The dollar index fell by -0.57% to a 3-1/4 year low due to uncertainties over trade policies, rising deficits, and weak economic reports. On the positive side, progress in trade talks with China and the EU is helping. The US June MNI Chicago PMI unexpectedly contracted, leading to expectations of rate cuts.

The euro rose by +0.51% to a new 3-3/4 year high against the dollar. Despite weak economic news from the Eurozone and dovish ECB comments, the euro was supported by the dollar’s weakness. German retail sales fell unexpectedly, while ECB Vice President Guindos expects almost flat growth in the Eurozone.

The yen fell by -0.48% against the dollar due to safe-haven demand after President Trump’s comments on Japan’s auto trade. Japanese industrial production rose less than expected, affecting BOJ policy. Gains in the yen were curbed by a rally in the Nikkei Stock Index to an 11-1/2 month high.

Gold closed up +0.61% while silver closed down by -0.51% on Monday. Precious metals settled mixed, with gold supported by a weaker dollar and trade uncertainty. Demand for safe-haven assets increased as nations rush to negotiate trade deals with the US. Gains in gold prices accelerated after the 10-year T-note yield fell to an 8-week low.



Read more at Yahoo Finance: Dollar Tumbles into Quarter End