U.S. Dollar Faces Rocky Road Amid Trade Policy Turbulence

The U.S. dollar steadied but faced its weakest monthly performance since November 2022 due to erratic U.S. trade policies. The market turmoil under President Trump's administration has benefited the euro, yen, and Swiss franc. Investors worry about tariffs impacting economic growth, inflation, and unemployment.

The U.S. dollar remained steady on Wednesday but is on track for its weakest monthly performance since November 2022, amid erratic trade policies under President Donald Trump. This has rendered the greenback vulnerable while boosting the euro, yen, and Swiss franc.

The Trump administration has backtracked multiple times on tariffs unveiled in April, leading to a global stock market meltdown and investors seeking refuge outside the U.S. currency and Treasury debt. While the administration is making progress on tariff negotiations, concerns about the economic fallout persist.

Investor worries continue as indicators suggest tariffs could impact growth and drive up inflation and unemployment. The dollar index is down 4.76% this month. Meanwhile, other currencies like the euro, yen, and Swiss franc have seen significant gains as the global trading system adapts to U.S. policy fluctuations.

(With inputs from agencies.)