The U.S. dollar suffered losses against the Japanese yen and Swiss franc on Monday as market participants grappled with ongoing trade tensions instigated by tariffs. Concerns over a potential slow-down in the U.S. economy further exacerbated the currency’s decline.
In Europe, the euro retraced gains from the previous week, though maintaining a position near a four-month high. Anticipation is building around potential boosts in government expenditure, as EU finance ministers convene to discuss defense funding options in light of U.S. foreign aid uncertainties.
Meanwhile, investors reduced their net long dollar positions, reflecting a belief in an imminent devaluation. This comes as analysts speculate over the U.S. Federal Reserve’s next move with traders pricing in significant interest rate cuts later this year.
(With inputs from agencies.)
