Dollar Falls, Yen Gains as US Exceptionalism Fades
The dollar dropped alongside US Treasury yields while the yen gained, amid mounting concerns about tariffs and government spending cuts hurting momentum in the world’s biggest economy.
The Bloomberg Dollar Spot Index fell 0.2%, while the yield on 10-year Treasuries slipped 3 basis points to 4.18%.
USD/CHF slipped 0.3% to 0.8787, while USD/JPY sank as much as 0.5% to 146.54 before paring some of those losses.
“Excessive volatility in U.S. markets could disrupt global risk sentiment, leading to broader market instability,” according to Tommy Xie, head of Asia macro research at OCBC. “Given the heightened uncertainty, a risk-off sentiment is likely to prevail in the near term.”.
EUR/USD up 0.2% to 1.0853.
GBP/USD little changed at 1.2887.
Source: Bloomberg