Dollar Weakens as Rising Volatility Signals Fear
The dollar weakened versus most major peers, while Treasuries pared Asia-session losses, as US President Donald Trump’s sweeping tariffs, including a 104% China levy, take effect.
The Bloomberg Dollar Spot Index falls for a second day, down as much as 0.7%.
Treasuries drop, with long-end yields rising most; the 10-year yield is up 7bps to 4.36%, after hitting 4.51% day high.
EUR/USD rallies by as much as up 1.2% to 1.1089, helped by hopes for fiscal spending in Germany, before halving gains.
EUR/GBP up a fifth day, rises to its strongest in a year before losing traction.
USD/CHF down 0.6% to 0.8425, after falling to 0.8382, lowest since Sept. 6
USD/JPY halves a 1.2% drop to trade at 145.37; BOJ Governor Kazuo Ueda said the central bank is closely monitoring growing uncertainties around global trade policy, though inflation and the domestic economy remain broadly aligned with the BOJ’s outlook.
Source: Bloomberg
