Dollar Weakens Amid Rate-Cut Bets, Euro Surges to 7-Week High

The U.S. dollar faced pressure on December 4, 2025, as economic data pointed to slowing growth, solidifying expectations of a rate cut by the Federal Reserve in the upcoming meeting. This provided relief to the Japanese yen, which gained momentum, and the euro reached a seven-week high. Market participants are also speculating about the possibility of White House economic advisor Kevin Hassett succeeding Jerome Powell as the next Fed Chair. Hassett, if appointed, is expected to advocate for further rate cuts, which could keep the dollar under pressure.