The U.S. dollar slumped to multi-year lows Monday amid surging optimism over U.S. trade negotiations and rising expectations of Federal Reserve interest rate cuts.

The greenback hit its lowest level against the euro since 2021, weakened further versus the yen, and continued its plunge against the Swiss franc to levels not seen since the SNB ditched its currency cap in 2015.

Currency traders ramped up bets on a Fed rate cut by September to a 93.3% likelihood following Chair Jerome Powell’s soft tone during congressional testimony last week.

Trade deal chatter added fuel to the dollar’s downfall as the White House inched closer to agreements with China, while Canada scrapped its digital services tax to resume U.S. negotiations.

Markets are bracing for a potentially volatile week with key U.S. data—including a jobs report—that could either confirm or crush current Fed policy bets.

Trump’s continued war on Powell also pressured the dollar, as he floated replacing the Fed chair and slashing rates to 1%, while pushing a $3.3 trillion spending spree through the Senate.

The dollar index is now on track for its biggest semiannual nosedive since the dawn of modern currency trading in the 1970s.

The yen, euro, franc, and sterling all gained ground, while the Canadian dollar and Chinese yuan also saw modest boosts from trade optimism.