Dollar Faces Decline Amid Trade Policy Concerns

The dollar experiences its weakest performance since November 2022 due to U.S. trade policy concerns. Safe havens, such as the euro and the yen, gain, reflecting investor caution. The U.S. economic outlook remains uncertain as market focuses on GDP data and ongoing tariff negotiations under Trump's administration.

The dollar showed a firmer stance on Wednesday, yet it is set for its weakest monthly performance since November 2022. Growing worries about trade policies under President Trump lead safe-havens to shine, with currencies like the euro and yen gaining strength.

Euro declined slightly but maintained substantial gains for the month as investors shifted away from U.S. assets. Germany's GDP met expectations, while France saw higher-than-forecast inflation. However, all eyes remain on incoming U.S. GDP figures and nonfarm payrolls for economic guidance.

U.S. trade tensions prompted global markets to stumble, urging investors to shun U.S. assets previously seen as safe havens. Talks of tariff negotiations with India and South Korea bring a glimmer of relief, but the economic damage from implemented tariffs continues to worry economists.

(With inputs from agencies.)