The Dollar Plummets to Six-Month Lows After Trump’s Tariffs
Investors continue to assess the impact of President Donald Trump’s sweeping tariffs on global trade and economic growth, reshuffling their portfolios and flocking to bonds and gold.
On Thursday, the dollar plunged worldwide as the euro and yen surged, hitting six-month lows. Investors remain focused on the broader implications of Trump’s tariffs, which are shaking market confidence and raising concerns about global economic stability.
The U.S. Dollar Index tumbled 1.6% to 101.815—its lowest level in six months—as investors sought refuge in safe-haven currencies like the yen and Swiss franc.
“The takeaway is that the U.S. no longer prioritizes growth, at least in the short term, as it historically has,” said one market analyst. “Investors want to allocate capital where growth is strongest, and the U.S. government appears either unwilling to maximize it or pursuing a different strategy. That uncertainty has rattled the markets.
U.S. Tariff Retaliation Sparks Market Turmoil
The long-anticipated tariff announcement sent shockwaves through financial markets, causing global stocks to tumble as investors rushed to the safety of bonds and gold. Fears of an escalating trade war fueled concerns about a potential global economic slowdown and rising inflation.
Trump announced a baseline 10% tariff on all imports into the U.S., with even higher levies targeting key trading partners.
Amid the turmoil, the euro surged 2.4% to $1.11—marking its biggest intraday gain since December 2015—while the dollar plunged 2.6% against the yen to 145.45 yen and dropped 3.03% against the Swiss franc to 0.8554 francs. Both safe-haven currencies reached their strongest levels against the dollar in six months.
Meanwhile, the British pound gained 1.11%, rising to $1.3155. The Mexican peso and Canadian dollar also strengthened. Unlike other nations facing new tariffs, Canada and Mexico—Washington’s two largest trade partners—are already subject to 25% tariffs on many goods and will not face additional levies following Wednesday’s announcement.
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