Market Turbulence: Dollar Dives as Global Stocks Soar

The U.S. dollar hit a three-year low as global stocks reached new highs amid rumors of a potential leadership change at the Federal Reserve. President Trump's considerations of a rate cut-oriented successor for Chair Jerome Powell added to the dollar's decline and market volatility.

The U.S. dollar sank to its lowest point in three years, while global stocks soared, marking their second record high in just three days. This market turbulence follows reports suggesting that President Donald Trump plans to appoint a new Federal Reserve chief who aligns with his interest rate cut agenda.

Persistent selling pressure on the dollar has been exacerbated by Trump's criticism of the Fed's approach to interest rate cuts. His deliberation over potential replacements for current Chair Jerome Powell has fueled speculations about future monetary policy, leaving the dollar down over 10% this year, poised for its largest first-half decline since the early 1970s.

European markets and currency traders responded positively to various global developments, including a tentative ceasefire between Israel and Iran and NATO's defense spending commitments. As President Trump's deadline for trade negotiations nears, intensified focus remains on U.S. economic policies, global trade tensions, and their impact on markets.

(With inputs from agencies.)