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.
US dollar index hits three-year low amid market shift
US dollar index hits three-year low amid market shift
Citizens of the Republic of Korea (ROK) have shared their views and expectations for future cooperation with China ahead of President Lee Jae Myung's state visit, which began in Beijing on Sunday.
Lee is making his first visit to China since assuming office in June 2025, with the state visit scheduled to run until Wednesday.
Street food vendor Jang Dong Il said he had high expectations for the visit, hoping it would lead to effective cooperation between the two countries and improvements in the economic environment for mutual benefit.
"More exchanges between the two countries would boost for the two economies. I am full of hope for a strong cooperation between President Lee Jae-myung and President Xi Jinping," he said.
"I have high hopes for this meeting between our countries' leaders. President Lee Jae Myung is visiting China between January 4 and January 7, to discuss economic, cultural and tourism exchanges.I understand about 200 to 300 South Korean corporate executives have traveled with him. I have high hopes for this. If this visit helps strengthen relations between two leaders,I believe it could lead to a win-win outcome and bring ROK and China closer together," Yang said.
"The leaders' meeting can spark dynamic exchanges in economy and culture. More exchanges between the two countries would boost the two economies. I am full of hope for a strong cooperation between President Lee Jae-myung and President Xi Jinping," said Noh Yun Ji, a teacher.
"The two can complement each other economically and continue to develop," said Kim Yoon Jung, a Seoul resident.
Dancer Yoon Ji Eun shared her experience of visiting Shanghai, saying that the delicious food suited her taste and that the city’s fashionable, clean urban environment left her with a positive impression of China.
"Last summer, I took a trip to Shanghai, and after seeing it for myself, I found the food was to my taste, and the city was modern and clean. So I came to see China as a captivating country," Yoon said.
"First of all, China is a very large country. And the food is delicious. I enjoy dishes like malatang and hot pot.I love Chinese food," Noh said.
The ROK citizens also expressed hope for strengthened people to people exchanges with China.
Recalling her time studying dance in China, Yoon said her experience highlighted the role of education in fostering cultural understanding.
"Although I don’t know much about this, as I mentioned, I went to Shanghai for dance lessons. It shows education can offer cultural experiences," she said.
South Koreans hope president’s first visit to China will enhance exchanges
