Dollar Struggles Amidst Global Currency Shifts and Trade Uncertainties

The dollar shows signs of recovery after a sharp selloff, amidst concerns about U.S. trade tariffs. Investors seek stability in European assets, leading to increased demand for the euro. U.S. economic factors and global policy uncertainties continue to influence currency markets and investor behavior.

The dollar has started to show signs of recovery against the euro and yen, following a sharp selloff last week. This comes amidst investor concerns over the impact of U.S. President Donald Trump's trade tariffs on the economy.

Recent fluctuations in tariff announcements have led to a loss of confidence in U.S. policymakers. This has resulted in investors seeking more stable options outside the U.S., boosting Treasury yields and reducing the appeal of the greenback.

The shift from U.S. assets to European markets continues as U.S. economic uncertainty and policy reshuffling dampen confidence. The euro's strength over the dollar is supported by these trends, with German investor morale dipping due to U.S. policy influences.

(With inputs from agencies.)