June 12, 2025
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3:38Now PlayingRich Clarida, Global Economic Advisor at PIMCO and former Fed Vice Chair, joins for an extended conversation on the Fed, rates, and the US economy.
The dollar fell to the weakest level in three years amid worries over US tariffs and the outlook for the US economy.
The Bloomberg Dollar Spot Index slid as much as 0.8% on Thursday to the lowest level since April 2022. The euro jumped to the strongest since 2021, while the British pound advanced to a new three-year high. All currencies in the Group of 10 gained against the greenback.
The latest declines come on the heels of Thursday data that showed US producer price inflation remained muted in May, held down by tame goods and services costs, which together with other data pushed traders to bet on more interest-rate cuts by the Federal Reserve. The Fed is set to hold its next policy meeting on June 18. Earlier in the Thursday session, the dollar came under pressure as President Donald Trump said he would notify trading partners soon of unilateral levies.
“Trump renewed tariff threats are sparking concerns over US economy, which trickles down to increased bets of Fed easing,” said Helen Given, a foreign-exchange trader at Monex Inc., adding that the dollar index could fall 5% to 6% further this year.
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