Dollar Falls as President Trump Cancels Attacks on Iran

The dollar declines after President Trump cancels planned strikes on Iran, as markets price in a potential peace path and more accommodative policy. The dollar index fell 0.17% on Thursday as stocks rallied and crude oil slid about 2%. Weekly jobless claims unexpectedly rose to 229,000, suggesting a softer labor market backdrop. U.S. May PPI final demand rose 1.1% month over month and 6.5% year over year, with ex‑food and energy up 0.4% and 4.9%, respectively. The ECB hiked rates 25 basis points to 2.25% and lifted 2026 inflation forecasts, while GDP growth was trimmed to 0.8%. Markets priced roughly a 4% chance of a rate hike at the next FOMC meeting.