Trump's plans to tighten US tariff policy intensify dollar decline — Reuters

On Monday, both the US dollar and the US stock market dropped amid escalating tariff disputes between America and China. Market sentiment was also affected by the upcoming release of US employment data and growing expectations of monetary policy easing in Europe, Reuters notes.

Late last week, Donald Trump announced a possible increase in steel and aluminum import tariffs effective June 4. The proposal to raise duties from 25% to 50% sent steelmakers’ stocks lower.

According to MUFG expert Derek Halpenny, the US president's policies remain highly unpredictable. But it seems like Trump isn't really concerned about the negative effects this is having both on the US and other countries, the strategist says. Since the start of 2025, the dollar index has lost about 9% against a basket of major currencies.

In response to the Republican’s latest remarks, the greenback extended its losses. Equity markets in the US and Europe also retreated.

Reuters also highlights the release of US labor market data on Friday. Nonfarm payrolls are expected to increase by 130,000, while the unemployment rate is forecast to remain at 4.2%.