In the wake of the latest U.S. tariffs, the euro has climbed to a six-month high as investors brace for potential economic disruptions. The reverberations of these tariffs were felt in the global currency markets, with sharp reactions seen across various currencies including the yen, Australian dollar, and New Zealand dollar.
The anticipation of central bank interest rate cuts dominated trading, as market strategists adjusted to the possible fallout from the tariffs. Predictions included significant reductions from both the European Central Bank and the Federal Reserve, amid fears that the U.S. economy could face a recession driven by trade tensions.
Adding to the uncertainty, Deutsche Bank issued a stark warning about a possible crisis of confidence in the U.S. dollar, as broader trade conflicts loomed. The dollar saw substantial drops against its peers, while commodities like gold held strong amid these turbulent financial conditions.
(With inputs from agencies.)
