Dollar slumps on escalating Sino-U.S. trade war
The U.S. dollar slumped further Friday, falling to an almost two-year low, on weakening confidence in the American economy as the trade war between the two largest economies in the world escalated, with China once more raising the tariffs on U.S. goods.
At 04:20 ET (08:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, dropped 1.2% to 99.430, falling below the 100 level for the first time since July 2023.
Dollar slumps to near two-year low
U.S. President Donald Trump’s pausing of widespread tariffs for 90 days helped the dollar, and global equities, but this relief hasn’t lasted long as it didn’t include China.
Instead, he ratcheted up duties on Chinese imports to an effective 145% rate, further escalating tensions between the world’s two largest economies.
China retaliated again Friday, announcing a new 125% tariff on U.S. imports - up from the 84% announced on Wednesday.
In Europe, EUR/USD traded 1.6% higher to 1.1371, with the single currency soaring to a level last seen in February 2022.
USD/CHF fell 0.9% to 0.8169, extending Thursday’s near 4% plunge, and dropping to levels not seen since January 2015.
GBP/USD traded 0.7% higher to 1.3058, with sterling boosted by data showing that Britain’s economy grew at a faster rate than expected in February.
In Asia, USD/JPY traded 1.3% lower to 142.65, with the Japanese currency soaring to its strongest level in more than six months on increased demand for safe havens.
Source: Investing.com
