Dollar Decline and Market Turmoil: Safe Havens Shine Amid U.S. Economic Concerns

The U.S. dollar slumped as concerns over the American economy led investors to prefer safe havens like the Swiss franc, yen, euro, and gold. Market turmoil erupted after President Trump's tariff pauses, with U.S. Treasury yields experiencing significant jumps, and the Chinese yuan witnessing fluctuations amidst these tensions.

The U.S. dollar took a hit on Friday, as investor confidence in the American economy dwindled. This shift saw a preference for safer assets like the Swiss franc, yen, euro, and gold, the latter reaching a record peak.

Market upheaval followed a brief period of respite when President Trump temporarily halted tariff rate increases on several trading partners. Despite the pause, tensions with China escalated, worsening the economic standoff between the world's giants.

Currency fluctuations ensued, with the Chinese yuan recovering from record lows and U.S. Treasury yields experiencing considerable rises. Analysts suggest these are signs of investors moving capital away from riskier U.S. assets amid current uncertainties.

(With inputs from agencies.)