Mike Dolan
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By Mike Dolan
LONDON (Reuters) - What matters in U.S. and global markets today
By Mike Dolan, Editor-At-Large, Finance and Markets
The U.S. dollar is on course for its worst first half year since 1973, as it plummeted again on Thursday amid rising expectations for Federal Reserve easing and statements from President Donald Trump about his pick for the next Fed chair.
I'll discuss this and the rest of the market news below. Make sure to check out today's column, where I discuss what the Bank of England’s rethink of its bond-selling strategy may signal about long-term yields and balance sheets across the developed markets.
Today's Market Minute
* U.S. President Donald Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week and credited U.S. strikes on Iran with bringing a swift end to the war between Israel and Tehran.
* In their rush to retain President Trump's support for NATO, the alliance's European members have promised to more than double the amount of wealth they set aside for military spending.
* Asian stocks wobbled and the dollar was under pressure on Thursday as the prospect of an early appointment of the next Federal Reserve Chair by President Donald Trump stoked concerns over the independence and credibility of the U.S. central bank.
* Much of the "de-dollarization" debate has focused on foreign exposure to U.S. securities like stocks and bonds. But ROI columnist Jamie McGeever warns investors should not ignore foreign direct investment flows, the traditionally sticky capital that may also be sending out warning signals.
* Asia's imports of crude oil rose in the first half of 2025 as a surge in June arrivals overcame a soft start in the early months of the year. Read the latest from ROI columnist Clyde Russell.
Dollar plunges as Trump pummels Powell
The dollar's index against the most traded world currencies has now lost more than 10% in 2025 to date just as the half-year mark approaches next week and it is now at its weakest in three years.
That is the index's worst six month performance since 1991, and it is its worst first half since the start of the floating exchange rate era 52 years ago.
The euro soared above $1.17 to its highest in almost four years, the Swiss franc hit its strongest in a decade and sterling hit its best level since 2021.
The dollar slide has snowballed since Trump's trade war unfolded in April amid worries about foreign investor flight and uncertainty about U.S. policymaking. A revival of Europe's economic outlook has been the flipside, spurred by a ratcheting up of regional defense spending and Germany's dramatic fiscal boost.
