Dollar Slides Amid Tariff Policy Uncertainty and Global Market Reactions

The U.S. dollar weakened against major currencies due to uncertainty over President Trump's tariff policies and potential U.S. economic impacts. Asian and European currencies strengthened against the dollar, driven by shifts in trade speculation and investor reactions, such as fears of new semiconductor tariffs.

The U.S. dollar experienced a decline against key global currencies on Monday, including the yen and the euro, amid the market's growing uncertainty over President Trump's ongoing tariff policies and their implications for the American economy.

Speculation about Taiwan allowing its dollar to appreciate, possibly as part of a trade deal with the U.S., contributed to the weakening dollar, as well as reports of large un-hedged positions being unwound by Taiwanese investors. These events have heightened investor concerns over potential new semiconductor tariffs from the U.S.

Amidst these market shifts, Treasury Secretary Scott Bessent defended the tariff strategy, arguing it would ultimately foster long-term economic growth. Market volatility persisted with the dollar's value impacted by these developments, while central banks in Europe prepared for potential policy changes later in the week.

(With inputs from agencies.)