Dollar falls to multi-year lows against euro amid US tariff expectations

Reuters reports that the US dollar has dropped to its lowest level since 2021 against the euro and hit a record low since 2015 against the Swiss franc. The decline comes as President Donald Trump's deadline for implementing import tariffs approaches. According to Trump, several US trading partners face potential new and increased duties. Thus far, only the United Kingdom, China, and Vietnam have reached tariff agreements with Washington.

The dollar's decline reflects investor concerns about escalating trade tensions. Convera analyst James Kniveton anticipates increased market volatility driven by new tariff implementations. However, forecasts remain measured, as these developments are largely anticipated and unlikely to shock investors. Markets have already begun pricing in the extension of the tariff pause.

The dollar declined 0.1% against the Swiss franc to 0.7944, while the euro fell 0.1% to $1.1773.