Dollar Index Holds Losses at 3-Year Low
The dollar index held session losses at the 99.6 mark on Wednesday, resuming its slide to the lowest in three years as more trade barriers by President Trump pressured the US growth outlook.
The President launched a probe to tax critical minerals, escalating the trade war with China shortly after concessions on autos and electronics had halted the selloff in dollar-denominated assets. Besides potential tariffs on critical minerals was added to ongoing threats on copper, pharmaceuticals, lumber, and semiconductors.
The unpredictability of trade relationships ramped up concerns of an incoming recession, triggering outflows to foreign markets that pressured the dollar, US equities, and US Treasury securities simultaneously.
On the data front, retail sales soared in March as households expedited car purchases before aggressive tariffs on the sector. The pressure on the dollar prevailed despite soft inflation readings from Canada, the Eurozone, and the UK.
Source: Trading Economics
