Dollar Tumbles as U.S. Treasury Yields Follow Suit

The dollar fell alongside U.S. Treasury yields following weaker U.S. economic data, leading to speculations of further Federal Reserve rate cuts. The dollar's fluctuations impacted foreign exchange markets, with notable movements against the euro, yen, and South Korean won.

The dollar faced downward pressure on Friday as U.S. Treasury yields declined following a week of unexpected U.S. economic data. This fueled expectations for further Federal Reserve rate cuts this year. Despite this, the greenback is still set for a fourth weekly gain against the euro.

The U.S.-China trade truce briefly boosted the dollar, but weak economic data triggered a drop. Market analysts suggest potential further weakening if Fed rate cut chances increase. Current market conditions reflect 59 basis points of easing by year-end and a 40% chance of a July cut.

The euro gained 0.2% against the dollar, influenced by Germany's investments and concerns about the dollar's safe-haven status. Meanwhile, the dollar showed varied performance against the yen and South Korean won, underpinned by global exchange discussions.

(With inputs from agencies.)