Dollar Touches Fresh Low as Hedging Costs Rally
All Group-of-10 currencies advanced against the dollar as risk aversion weighed on the greenback and boosted demand for long-volatility trades amid signs that the Trump administration’s tariff policy is eroding investor confidence in the world’s reserve currency.
The Bloomberg Dollar Spot Index fell 0.5%, touching a fresh six-month low after President Donald Trump launched a probe into the need for tariffs on critical minerals and called on China to reach out to him to kick off negotiations aimed at resolving the escalating trade war.
EUR/USD rallied 0.7% to 1.1365.
GBP/USD rose less than 0.1% to 1.3234, up for a seventh day
UK inflation slipped back for a second straight month, providing some relief for households before they were hit by a huge increase in bills this month.
USD/JPY dropped 0.4% to 142.70; it fell earlier to 142.05, lowest since Sept. 30.
US President Donald Trump and representatives from Japan are set to meet today to talk about tariffs.
USD/CHF fell 1% to 0.8154.
Source: Bloomberg