Stocks tick up but dollar hits 2025 low amid mixed macro signals
The dollar hit a 2025 low on Thursday but Wall Street stocks held near record highs as traders weighed low inflation readings, rising Middle East tensions, and the fragility of a U.S.-China trade truce.
U.S. consumer and producer inflation reports showed overall price pressures remained contained in May, largely due to declines in the cost of gasoline, cars and housing, or services like air transport. But most economists expect inflation to pick up as the impact of U.S. tariffs begins to bite.
The dollar, which has lost around 10% in value against a basket of currencies this year, fell to its lowest since April 2022.
Global stocks continued an almost-unbroken rally since early April, leaving the MSCI All-Country World index (.MIWD00000PUS), opens new tab up 0.25%, just below Wednesday's all-time high.
Classic safe-haven assets got a lift. The Swiss franc USDCHF and Japanese yen USDJPY strengthened, pushing the dollar down 1% against the franc and down 0.67% against the yen, while gold rose about 0.9% to $3,382 an ounce.
Relief stemming from a positive conclusion to U.S.-China trade talks earlier this week, which President Donald Trump said was a "great deal with China," evaporated by Thursday.
The euro EURUSD rose 0.74% to $1.15, touching its highest level since October 2021.
Source: Reuters
