Dollar Dips After Trump's Tariff Reversal

The U.S. dollar weakened against both safe-haven and risk-sensitive currencies following President Trump's unexpected adjustment to tariffs. Market reactions varied, with changes in currency strength and trade tensions involving China potentially influencing further developments.

In a surprise move, U.S. President Donald Trump has altered the landscape of global trade by granting a temporary 90-day tariff reprieve, sparking volatility across markets. The dollar particularly weakened against traditionally safe currencies, causing fluctuations in investor positioning.

The sudden tariff shift impacted key currencies, with the Japanese yen and Swiss franc reflecting unexpected strength. Meanwhile, the Australian dollar showed signs of optimism, often viewed as a sentiment gauge for global economic growth.

Persisting trade policy unpredictability continues to cast uncertainty over U.S. financial markets, as investors recalibrate strategies. The evolving situation hints at potential future adjustments, especially amid the ongoing trade tensions with China.

(With inputs from agencies.)