The U.S. dollar traded near its lowest levels of the year as markets anticipate the start of a U.S. easing cycle, with growing expectations of an outsized rate cut by the Federal Reserve. The chance of a 50 basis point rate cut has surged to 67%, driven by media reports suggesting a more aggressive move by the Fed. The euro rallied close to its yearly high, while the yen briefly strengthened as traders anticipated further Fed easing, which could weaken the dollar against major currencies, especially the yen.