Global currencies plummeted on Monday as the U.S. dollar surged, driven by tariffs imposed by President Donald Trump on China, Canada, and Mexico. The yuan, peso, and Canadian dollar all tumbled to significant lows, escalating fears of a trade war.
The U.S. dollar’s rise was broad, impacting the euro and Swiss franc, typically seen as safe havens. The tariffs, effective from February 4, sparked immediate vows of retaliation from Canada and Mexico, while China aimed to contest the levies at the World Trade Organization.
In response, market analysts predict severe impacts on global trade, with the potential for increased U.S. inflation. Meanwhile, bitcoin fell to its lowest in nearly three weeks, underscoring the wider market volatility.
(With inputs from agencies.)
