Dollar Dips Amid Trade Tensions and Tariff Uncertainty

The U.S. dollar weakened against major world currencies due to uncertainty from President Trump's tariff policies. The dollar reached record lows against the Taiwan dollar and other Asian currencies as speculation about trade deals grew. Markets remain volatile amid potential new tariffs and economic policies.

The U.S. dollar experienced a marked decline against major global currencies on Monday, influenced by President Donald Trump's unpredictable tariff policies. Investors in the market reacted cautiously, contributing to the dollar reaching new lows against entities including the Taiwan dollar at 28.8150, amid assumptions of a favorable trade deal.

Among the steepest declines, the Australian dollar surged to a value last seen in December, reaching $0.64935 against the greenback. This currency fluctuation is credited to investors' tentative approach following potential U.S. semiconductor tariffs, with discussions suggesting possible currency appreciations in East Asia as a repercussion.

A further layer of complexity was added when Treasury Secretary Scott Bessent defended the tariff strategy, reasserting their role in fostering long-term growth. While Trump's tariffs and potential new duties on foreign films sparked market volatility, experts predict the Federal Reserve will maintain steady interest rates amid economic uncertainty.

(With inputs from agencies.)