Safe Haven Surge: Yen and Franc Jump Amid AI Disruption

The yen and Swiss franc gained against major currencies following a tech stock slump and the unveiling of a new Chinese AI model challenging the current market dynamics. Traders responded by seeking safer currencies amidst a weaker dollar based on trade concerns and Trump's tariff remarks.

In a dramatic shift in the forex market, the Japanese yen and Swiss franc surged on Monday as investors sought refuge in stable assets following a steep drop in tech stocks. The catalyst: China's launch of a free, open-source AI model, challenging existing market assumptions.

The dollar, which has seen its weakest performance in over a year, continued to lose ground amid renewed worries of a trade war. The U.S. and Colombia's pullback from potential trade confrontations further stoked currency market anxieties.

Major central banks are set to meet this week, with monetary policy and upcoming inflation data anticipated to influence further movements in forex rates as traders remain cautious about Trump's tariff strategies.

(With inputs from agencies.)