Dollar's Decline: Global Markets React to U.S. Economic Uncertainty

The U.S. dollar slumped as investors shifted to safe havens due to waning confidence in the U.S. economy. This shift led to increased valuation of gold, the Swiss franc, yen, and euro. The economic uncertainty has been exacerbated by volatile trade policies, affecting market stability and investor sentiment.

The U.S. dollar experienced a steep decline on Friday as investors moved away from U.S. assets, seeking refuge in safe havens like the Swiss franc, yen, and euro, as well as gold, which hit a new peak. The Swiss franc reached a decade high, contributing to the dollar's slide.

This shift comes after U.S. President Donald Trump unexpectedly paused higher tariff rates on numerous trading partners, sparking a brief rally in Wall Street stocks. However, the rally quickly dissipated amid concerns over escalating trade tensions, especially with China, as Trump imposed higher tariffs on Chinese imports.

The Chinese yuan also experienced fluctuations, initially dropping to a record low but later recovering. Investors and market analysts express apprehension over the unpredictable trade policies under the Trump administration, leading to instability in both equity and Treasury markets.

(With inputs from agencies.)