Dollar slides with investor confidence shaken in safety of US assets
The dollar continued to slide against major currencies on Friday as the back-and-forth over import tariffs shook investor confidence in the safety of the greenback, sending it to its lowest level in a decade against the Swiss franc and a three-year low versus the euro.
China increased its tariffs on U.S. imports to 125% from 84% on Friday, retaliating against U.S. President Donald Trump's decision to hike duties on Chinese goods to a total of 145% after pausing many of his latest tariff hikes on most countries.
The dollar has been hit hard by a global selloff that spread to stocks and even safe-haven U.S. Treasuries. The yields on benchmark 10-year notes are on course for their biggest weekly jump since 2001.
Data on Friday showed U.S. consumer sentiment deteriorated sharply in April while 12-month inflation expectations surged to the highest level since 1981 amid unease over the trade tensions.
The dollar was down 0.9% at 0.81650 against the Swiss franc , extending losses in the previous session when it plunged to its lowest level since January 2015. It is on track for its biggest weekly drop since November 2022.
The greenback was down 0.51% at 144.05 yen after hitting its lowest level since September 2024. It is set for its largest weekly drop since early February.
European Central Bank President Christine Lagarde on Friday said her central bank was ready to deploy its instruments to maintain financial stability and that it had a solid track record in devising tools when required to deal with turbulence.
The euro surged 1.25% to $1.134050, after hitting its highest level since February 2022. It is on track for its biggest weekly gain since early last month.
The single currency also rose 0.43% against the pound in a sign of its outperformance. The pound was up 0.89% against the dollar, at $1.30825.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.56% to 99.958 - hitting its lowest mark since April 2022. It is on track for its biggest weekly drop since early last month.
Source: Reuters
