Recent trade threats by US President Trump sent the dollar to a three-year nadir on Thursday amid increasing investor concerns, with Trump saying he is sending messages to the US trade partners, specifying the new tariffs in the next few weeks as the 90-day pause approaches an end.

The dollar lost 0.8% against a basket of major rivals, falling below the level it reached after the Liberation Day wave of losses in early April.

As for Iran, Trump threatened once more that Iran can not acquire nuclear weapons.

Despite the ongoing tensions, stocks recovered from their steep April losses, with the SP 500 approaching a new record high, but the Stoxx Europe 600 index tumbled 0.9% on Thursday.

Recent US inflation data, which missed expectations, heaped pressure on the dollar and opened the door for a Fed rate cut in September.

The dollar lost 10% of its total value this year amid increasing economic concerns due to the trade war and US government deficits.

The recently released US consumer prices report showed a muted impact of tariffs on inflation so far in May, but economists still expect a rise in upcoming months.

On Wednesday, the US administration decided to withdraw some personnel from the Middle East amid increasing security threats, sending oil prices up 4% temporarily.

Iran on the other hand asserted it wont give up its right to enrich uranium and threatened military actions against US military bases.