The dollar held around three-year lows Friday as traders ramp up bets on US interest rate cuts, while most stock markets rose on hopes Donald Trump will further delay imposing tough tariffs.

With the Israel-Iran ceasefire holding for now, investors were able to turn their attention back to the economy and the US president's trade war.

Bets on a Federal Reserve rate cut jumped this week after Trump said he had candidates in mind to succeed boss Jerome Powell when he leaves next year, with reports saying he would make an announcement as early as September.

That was followed Thursday by data showing the world's top economy contracted more than previously estimated in the first quarter and consumer spending grew less than expected.

Traders are now fully expecting two rate cuts this year, while there was a pick-up in bets on a third, according to Bloomberg News.

Powell, who has faced pressure from Trump to move sooner, appeared to take a dovish turn in a deposition to lawmakers this week, while several other Fed officials have also hinted at a softer approach.

The prospect of lower borrowing costs sent the........

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