Dollar's Decline Amid Fed Rate Cut Anticipation and Trade Uncertainty

The U.S. dollar saw a decline on Thursday as expectations of Federal Reserve rate cuts intensified and uncertainty over trade tensions persisted, especially following comments from President Trump regarding potential extensions for trade talks.

Traders were cautious as scant details on a U.S.-China trade agreement emerged, leading to a fall in the dollar and causing the euro to reach a seven-week high. The greenback also dipped against other major currencies, with the yen and sterling both seeing gains.

Analysts suggest that President Trump's strategy may aim to pressurize trade negotiation efforts, although market reactions remain uncertain. Investors are also eyeing upcoming economic indicators, including the producer price index, for further guidance on the dollar's trajectory.

(With inputs from agencies.)