Dollar Weakens, Markets Reassess Trump Tariff Risk
The US dollar fell against most G10 currencies after President Donald Trump's latest tariff plans rekindled concerns about the direction of US economic policy and the attractiveness of American assets. The Bloomberg Dollar Spot Index fell as much as 0.3%, reflecting investors becoming more defensive about policy risks.
Pressure arose after Trump announced 15% global import duties, following a US Supreme Court ruling that invalidated broader "reciprocal" tariffs. One analyst viewed the dollar's weakness as a continuation of a "crisis of confidence" in US assets, as markets perceive significant policy uncertainty that could impact growth and inflation.
In Asian markets, USD/JPY fell around 0.4% to 154.39 in thin trading due to a holiday in Japan. Meanwhile, a senior US official emphasized that Trump's Supreme Court defeat would not invalidate existing trade deals with partners, including Japan, in an effort to allay concerns that existing agreements would be compromised.
Among other major currencies, EUR/USD strengthened around 0.3% to 1.1822. Meanwhile, AUD/USD fell slightly by 0.2% to 0.7070, despite the pair previously recording five consecutive weeks of gains—its longest streak since 2024. (asd)
Source: Newsmaker.id
