On June 26, 2025, the U.S. dollar reached its lowest point in three years. This coincided with President Donald Trump's consideration of potential successors for Federal Reserve Chair Jerome Powell.
Trump is evaluating candidates to replace Powell, who is expected to depart next year. The Dollar Index fell to 96.997 points, its lowest since March 2022. The British pound reached its highest level against the dollar since October 2021.
Market analysts expressed concern over the Federal Reserve's independence. Trump has criticized Powell for not implementing interest rate cuts, fueling worries. The Wall Street Journal reported a replacement could be announced as early as September.
Economic data showed the U.S. economy contracted at an annual rate of 0.5 percent in the first quarter. U.S. durable goods orders for May exceeded estimates, while labor market data was mixed.
European and Asian stock markets showed mixed performances. Oil prices remained steady as Middle East tensions eased. Shares in European defense companies rose after NATO countries agreed to increase military spending.
Key figures at around 2030 GMT: Dow up 0.9 percent, S&P 500 up 0.8 percent, Nasdaq Composite up 1.0 percent. Euro/dollar up at $1.1701, Pound/dollar up at $1.3725.