The U.S. dollar hovered near a five-month low against major currencies as global trade tensions escalated. Investor anxiety over potential economic repercussions from President Trump’s tariff policies has weakened the dollar, sliding from a two-year peak in January.
The Federal Reserve, Bank of Japan, and Bank of England are set to maintain interest rates, while Germany advances a massive stimulus plan to reignite Europe’s largest economy. These developments, along with changing retail sales and economic projections, paint a complex picture for the dollar’s trajectory.
Asian markets eye Japan’s and Australia’s cautious policy shifts, further influenced by trade wars. The Australian dollar steadied with Chinese retail optimism, while the yen and sterling experienced fluctuations. In digital currency, Bitcoin’s slight dip highlighted market sensitivity amid ongoing global financial adjustments.
(With inputs from agencies.)
