Dollar's Dismay: Global Currencies Gain as U.S. Fed Faces Pressure

The U.S. dollar teetered on Friday, nearing its lowest point in over three years against major currencies like the euro and sterling. This downturn comes as traders bet on imminent rate cuts from the Federal Reserve while waiting for new trade agreements, with a tariff deadline looming in July.

Market attention has gravitated toward U.S. monetary policy, especially amid whispers of President Trump potentially naming a dovish Federal Reserve chair sooner than expected. This could replace the current Chair, Jerome Powell, whose term ends in May, and sustain the dollar's downward momentum.

Investor focus is also on potential trade deals before the July tariff deadline, with Germany's Chancellor urging swift agreements. Meanwhile, other global currencies, including the Australian dollar and Taiwan's currency, make gains amid the dollar's decline, reflecting global economic recalibration.

(With inputs from agencies.)