The dollar fell to the weakest level in three years amid worries over US tariffs and the outlook for the US economy.

“Without a spike in inflation,” said eToro equity analyst Bret Kenwell, “the Fed may have trouble defending its stance on interest rates, particularly as other central banks lower rates and as borrowing costs remain high for US businesses and consumers.”

U.S. economic growth is likely to "slow markedly" this year and next, due to tariffs and uncertainty under the Trump administration.

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President Trump raised the specter of the U.S. unilaterally setting tariff levels for many countries in the coming weeks. Speaking to reporters at the Kennedy Center on Wednesday evening, he said the U.