Dollar Slide Continues, GBP/USD Hits Fresh 44-Month Best

July 1, 2025 - Written by Ben Hughes

STORY LINK Dollar Slide Continues, GBP/USD Hits Fresh 44-Month Best

The US Dollar has continued to lose ground on Tuesday with the currency index sliding to 4-month lows in global markets.

The Pound to Dollar (GBP/USD) exchange rate hit 44-month highs close to 1.3785 in European trading.

The Euro to Dollar (EUR/USD) exchange rate also hit 45-month highs close to 1.1820.

Markets are dealing with multiple fundamentals which will lead to further volatile trading.

The Republican One Big Beautiful Bill Act is still being debated in the Senate with an all-night sitting still in progress. There has been a fresh row between President Trump and Elon Musk while Republican Senators are under pressure from both sides.

Trade negotiations will also be important ahead of next week’s deadline to reach reciprocal deals.

Traders are also increasingly confident that the Federal Reserve will move towards interest rate cuts while Trump is exerting sustained pressure on Chair Powell and the whole central bank committee.


Last night, Trump published a handwritten note stating that US rates should be below 1.75% and the third-lowest in global terms.

Bank of Singapore currency strategist Moh Siong Sim commented; "There are many reasons not to like the USD. Some are structural, like the erratic trade policies and fiscal risks."

He added; "They have earlier caused the USD to weaken despite its relative yield advantage. But the risk of a more dovish Federal Reserve eroding USD's yield advantage is the latest source of USD weakness."

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TAGS: Pound Dollar Forecasts