The dollar fell to its weakest point in four months against key currencies on Monday, as ongoing global trade tensions involving U.S. tariffs unsettle investors. This economic climate has spurred demand for safe-haven currencies, like the Japanese yen and Swiss franc, which have recently hit multi-month highs.
Fears of a U.S. economic slowdown are rising after President Donald Trump imposed tariffs on major trading partners. Investors have responded by significantly cutting their net long dollar positions. Meanwhile, the euro and Swiss franc rose against the dollar, affected by Germany’s recent fiscal policy changes.
The uncertainty continues amid speculations about a looming recession, further fueled by Trump’s tariff-related comments during a Fox News interview. Recent labor statistics indicate U.S. job growth, albeit with underlying market vulnerabilities, prompting speculation about potential Federal Reserve rate cuts later this year.
(With inputs from agencies.)
