Dollar weakens amid volatility in US equity markets

On Friday, the Bloomberg Dollar Spot Index, which tracks the greenback's performance against major global currencies, dropped to a six-month low. The decline followed massive outflows from US assets amid escalating trade tensions between Washington and Beijing.

Friday's volatility in the dollar will round off another turbulent week for global equity markets. Investors remain on edge amid President Trump's unpredictable policy shifts, Bloomberg reports.

On Thursday, the dollar showed its strongest decline in the last two years. This was caused by growing traders’ expectations of a Federal Reserve interest rate cut to counter the impact of tariffs on the US economy.

The current economic situation contrasts sharply with Donald Trump's campaign promises to cut taxes, strengthen the dollar, and boost GDP growth in the United States.

Meanwhile, investors are closely monitoring Beijing's response to the US administration's actions. As the White House has stated, tariffs on Chinese imports have been raised to 145%.