According to Reuters, the dollar fell significantly after US President Donald Trump announced the imposition of more aggressive than expected duties on the country's trading partners. The claims made investors turn to safe havens, such as the franc and the yen.
Trump plans to impose a 10% base tariff on all imports. In addition, duties on some US trading partners will be higher. The tariffs are set to go into effect on April 9 and may target about 60 countries, Reuters notes. As the news agency highlights, this contributes to the concerns over the global economy slowing down.
In the coming days, markets will be awaiting clarification whether US trading partners could negotiate tariffs and whether further trade restrictions could be introduced, Capital.com analyst Kyle Rodda believes.
10-year Treasury yields declined 14 basis points and reached a five-month low of 4.04% as investors expect the US economy to slow down. The dollar index fell to its weakest level since mid-October 2024, Reuters reports.