US dollar index hits three-year low amid market shift

China

US dollar index hits three-year low amid market shift

2025-06-27 16:30 Last Updated At：06-28 00:57

The U.S. Dollar Index (DXY), which tracks the greenback against six major peers, fell 0.54 percent to 97.147 on Thursday at 15:00, its lowest level in three years.

In late New York trading, the euro was up to 1.1721 U.S. dollars from 1.1661 dollars in the previous session, and the British pound increased to 1.3749 dollars from 1.3663 dollars in the previous session.

At the same time, market expectations for the Federal Reserve to cut interest rates this year further increased, driving U.S. stocks higher overnight.

The Dow Jones Industrial Average rose 404.41 points, or 0.94 percent, to 43,386.84. The Standard and Poor's 500 Index climbed 48.86 points, or 0.80 percent, to 6,141.02, which is just shy of the record close high of 6,144.15 on Feb. 19, 2025. The Nasdaq Composite Index gained 194.36 points, or 0.97 percent, to finish at 20,167.91, barely missing record closes.

On the economic front, U.S. gross domestic product (GDP) contracted at an annual rate of 0.5 percent in the first quarter, according to the Commerce Department's final estimate. That marks a deeper decline than earlier estimates of 0.3 percent and 0.2 percent.

Analysts believe that one of the reasons for the weakening of the U.S. dollar is that the Wall Street Journal said on Wednesday that U.S. President Donald Trump is considering announcing the candidate to succeed Federal Reserve Chairman Jerome Powell in advance, hoping to weaken his influence.

In Europe, the recent confirmation of increased fiscal spending boosted the euro, thus exerting pressure on the U.S. dollar. Some market participants interpreted Powell's recent testimony in Congress as remaining open to rate cuts.

In terms of crude oil futures, U.S. commercial crude oil inventories have continued to decline in recent weeks, indicating an increase in U.S. energy consumption demand. At the same time, the fall in U.S. dollar index provided support for the upward trend of crude oil futures denominated in U.S. dollars, leading to a rise in international oil prices on Thursday.

Weak US economic data, coupled with the significant decline in the US dollar index, also led to a slight increase in international gold prices on Thursday.

ROK president calls for learning lesson from anti-aggression history

The Republic of Korea (ROK) and China should cherish the historical experience of jointly resisting aggression and continue to work together for a prosperous future, said ROK President Lee Jae Myung.

At the invitation of Chinese President Xi Jinping, Lee will pay a state visit to China from Jan 4 to 7. It will be Lee's first visit to China since he took office last year.

In an interview with China Media Group (CMG) in Seoul on Wednesday, Lee said that humanity must learn from the past to prevent the tragedy of war from repeating itself.

"While pursuing their own national interests to the fullest extent, countries must not harm the national interests of others, but should coexist peacefully. The act of invading other countries and massacring their people for one's own benefit must never be repeated. History of humanity often repeats itself, therefore we must learn from the past. In this regard, I believe the historical experience of ROK and China in resisting aggression and fighting together is invaluable. Of course, while historical experience is important, we cannot remain stuck in the past. For a better future for the people of both countries, we need to continuously explore possibilities for working together towards the future," said the president.