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The dollar sank to its lowest level in more than three years on Thursday
and the FTSE 100 closed at a record high as Donald Trump’s latest trade threats and the weakening economy appeared to bring forward interest rate cuts by the Federal Reserve.

Foreign exchange traders sold the dollar in favour of the yen and the euro,
which both climbed by about 1% against the US currency to leave it almost 10% down on its value against a basket of currencies since the beginning of the year.
In London, the FTSE 100 ended the day at 8,884 points, above the previous closing high of 8,871 points set on 3 March this year, as investors looked for alternatives to US company shares.

Analysts said there was little appetite to buy dollars at a time when recent data showed the jobs market weakening and while erratic White House policies clouded the outlook for the US economy.

The slide came after the US president revived last month’s threat to unilaterally impose country-specific tariff rates within the next two weeks.
“We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” Trump told an event in Washington on Wednesday.
Markets were also unsettled by growing speculation that the Federal Reserve would begin to cut the cost of borrowing more quickly than expected after consumer inflation came in lower than expected and producer inflation dropped.
Weaker job hiring was another factor after the four-week average number of initial applications for unemployment support rose by 5,000 to 240,250 in May, the highest since August 2023.
https://www.theguardian.com/business/2025/jun/12/dollar-slides-to-three-year-low-after-trump-repeats-tariff-threats?CMP=Share_iOSApp_Other