US dollar weakens against safe-haven Swiss franc as tariff worries ripple through markets
The U.S. dollar weakened against the safe-haven Swiss franc in mixed trading on Monday as concerns about a global recession heightened following U.S. President Donald Trump's sweeping tariffs on trading partners.
Global stock markets were hit again on Monday, although the benchmark S&P 500 (.SPX), was well off its lows in volatile trade, and investors wagered the mounting risk of a deep economic downturn could lead to a cut in U.S. interest rates as early as May that would erode the dollar's yield advantage.
The dollar hit its lowest in six months against the Swiss franc and was last down 0.44% at 0.85720 franc in choppy trading. .
The dollar reversed early losses against other safe-haven currencies, standing 0.53% firmer against the yen in afternoon trade at 147.660, after tumbling more than 1.4% earlier.
The European Commission proposed counter-tariffs of 25% on a range of U.S. goods on Monday in response to Trump's tariffs on steel and aluminium, a document seen by Reuters showed.
The euro , which gained as much as 0.7% to $1.1050 earlier in the session, was down 0.35% at $1.092800.
Sterling hit a one-month low at $1.27125 and was last down 1.3% against the greenback.
The dollar index turned 0.6% higher after weakening in early trade.
While the dollar is typically known as a safe-haven asset, that status seems to be eroding as uncertainty over tariffs and concern over their impact on U.S. growth intensify.
The risk-sensitive Australian and New Zealand dollars, as well as the Swedish and Norwegian crowns, all dropped against the dollar.
The Aussie currency, often used as a proxy for risk appetite, tumbled to a five-year low earlier in the session, but was last down 1.025% to $0.59835.7
The New Zealand dollar eased 1.08% to $0.55355, having slid more than 1% earlier in the session.
Trump's tariff announcements wiped out nearly $6 trillion in value from U.S. stocks last week.
Source : Reuters
