Dollar Dips as Tariff Tensions Mount

The U.S. dollar weakened against other major currencies due to ongoing uncertainty from President Trump's tariff policies. This decline impacted both Asian and European currencies, with particular attention on potential new tariffs against semiconductors. Central bank policies globally anticipated stability with minor rate adjustments.

The U.S. dollar faced a sharp decline against major global currencies on Monday, largely influenced by uncertainties around President Donald Trump's tariff policies. These developments have raised concerns over potential economic repercussions and the greenback's weakening.

The decline was most notable in its exchange against Asian currencies like the Taiwanese dollar, which reached a fresh record low. Market speculations suggest Taiwan may be favoring currency appreciation amid its trade relationships with the United States. Other currencies, including the Australian dollar, showed strength against the U.S. dollar, with the Aussie hitting levels not seen since December.

These shifts occur amidst broader concerns over new tariff announcements from the U.S., potentially targeting the semiconductor industry. Trump's commitment to tariffs, coupled with intentions for economic growth through strategies like tax cuts, continues to shape market dynamics. Movements in currency markets reflect both current policy stances and anticipation of upcoming central bank meetings across Europe and beyond.

(With inputs from agencies.)