Dollar Weakens Amid Rising Bets on Dovish FedStock Market News for Monday, June 30, 2025: S&P 500 and Nasdaq Hit New Records on Trade Deal HopesLast Updated:1 day agoDollar Weakens Amid Rising Bets on Dovish FedByPaulo Trevisani, Dow Jones NewswiresThe dollar is on path to end the quarter more than 5% weaker than it started, amid growing expectations of interest rate cuts by the Fed.On the CME's FedWatch tool, odds of three cuts this year near 49%, up from 29% a month ago. Feeding those expectations are cooling economic and inflation indicators. Fears that tariffs could reignite inflation, however, keep the Fed from a dovish pivot. With Trump cranking up pressure for rate cuts, markets increasingly price a more dovish Fed, weighing on the dollar.The WSJ Dollar Index is on pace for its largest quarterly decline since the 4Q 2022.