Global Markets React: Greenland Tensions and Currency Fluctuations

Global markets are rattled as US President Trump's threats against the EU over Greenland trigger a selloff in US stocks and government bonds. Investors express concerns about US market exposure, de-dollarisation trends, and strained international relationships. Key currencies experience fluctuations, while analysts question potential tariff implementations.

In the latest market news, the US dollar weakened for the second consecutive day in Asian trading amidst heightened geopolitical tensions. The decline follows a stern warning from the White House directed towards the European Union over the strategic interests involving Greenland, causing widespread selloffs in American stocks and government bonds.

The dollar index, a key indicator measuring the greenback's performance against a basket of six currencies, fell by 0.3% to 98.841, marking its lowest point since mid-January. This movement stems from investor anxiety regarding prolonged uncertainty, weakened international alliances, and an acceleration of de-dollarisation strategies aimed at reducing reliance on the US dollar.

Further adding to market jitters, renewed tariff threats against European allies by the Trump administration have reinvigorated the 'Sell America' trend. Meanwhile, other global currencies such as the euro and the British pound have seen slight gains, amid doubts surrounding the actual implementation of the proposed tariffs.

(With inputs from agencies.)