Dollar Hits 7-Week Lows, Focus on Rate Outlook, Trade Talks

(Reuters) -The dollar slid on Thursday on heightened expectations of federal reserve rate cuts this year and lingering uncertanty over tariff battles.

Us President Donald Trump said on wedding he would be willing to extend a July 8 deadline for completeing trade talks with counts, but added the us would send out The terms of trade deals to dozens of other countries, which they could then embrace or reject.

His comments Followed Earlier Remarks from Us Treasury Secretary Scottary Scott Bessient that TRUMP Administration May offer Extensions from a July Trade Deal Deadline for Countryies Negotiating

Uncertainty Over What Comes Next for Global Trade, AlongSide Scant Details of a Framework Agreement Reached Between the Us and China This Week, Damped The Overall Mood in Markets and Gave Investors More Reasons. Sell ​​the dollar.

The broad fall in the greenback on Thursday pushed the Euro to a Seven-White High Early in the Session, Before the Common Currency Pared Some Gains to Last Trade at $ 1.1513.

Sterling was flat at $ 1.3544, while the yen climbed 0.4% to 143.95 per dollar.

Against a basket of currency, the dollar fell to its weakest since April 22 at 98.246 and was last down 0.04% at 98.419.

Us treasury yields dropped on Wednsday as the Closely Watched “CORE” Consumer Prices Index Eased Some Pressure on the Federal Reserve to Maintain Higher Interest Rates for Longer.

Markets Price Fed Rate Cuts of 25 Basis Points by Year-Ed, with an 80% chance of the first move in September and 100 bps by September 2026.

However, analysts remain cautious about the influence outlook ahead of Thursday’s release of the producer price index.

“We suspect the core personal consumption expertures price index (PCE) Reading will prove modestly firmer, although the result will also hange on the inputs from core ppi,” SAID DAVID DAVID of ” Economics at Macquarie.

“Despite the Subdued Figures, Through Year-Ed, We Expect Year-On-Year Core Inflation to Remain Elevated and Potentially Rise as PRICE PRESSURERERERES FOMROM RECENT TARF INF IH

Barclays Estimates that May Core PCE Inflation Could Register a Stronger Increase, of 0.22% monthly and 2.7% yearly after incorporating the cpi data.

Elsewhere, The Dollar Slid 0.38% Against the Swiss Franc to 0.8170.

The onshore yuan rose 0.1% to 7.1818 per dollar, thought Gains was capped by the stigle-fragile truth in the us-china trade war and the uncertanty surround surrounding the next movies of the two counters.

The Euro was clinging to Strong Gains on Thursday, Having Jumped Against Most Other Currencies in the Previous Session.

Against the yen, the common currency last dropped 0.15% to stand at 165.88 having risen to its strongest since the October October at 166.42 Yen on CHRSDAY.

While there was no immediati trigger behind the moves, analysts say the euro has over the past week drawn support from Hawkish European Central Bank Rhetoric.

Last Week, The ECB Cut Interest Rates as expected but hinted at a pause in its Year-Long Easing Cycle after Inflation Finally Returned to its 2% target.

That contrasts with the likely resumption of a fed Easing Cycle Later This year, and as trump has reepeatedly called for us rates to be lowered.

Trump said last week

The euro has risen near 11% for the year thus far, helped in part by a weaker dollar and as investors pour money into european markets in a move aay from the us

(Reporting by Rae Wee and Stefano Rebaudo; Editing by Jacqueline Wong and Toby Chopra)