Dollar's Rollercoaster Ride Amid Global Trade Uncertainty

The dollar weakened as other currencies gained strength due to uncertainty over U.S. trade agreements. President Trump's administration is negotiating deals, while discussions with China remain unsettled. Economic concerns, including potential new tariffs, impact market dynamics as global players respond to shifting trade and currency environments.

The dollar resumed its decline on Wednesday, with both safe-haven and risk-sensitive currencies gaining ground against the greenback. This movement comes as traders anticipate new U.S. trade agreements with international partners under President Donald Trump's administration.

The weakening dollar follows last week's market concerns over the economic impact of new tariffs, leading investors to adjust their allocations overseas amid uncertainty surrounding these trade measures. The U.S. is actively engaging with countries like Japan, although tensions with China are still escalating, creating an information vacuum as stakeholders await deals.

Economic dynamics are further complicated by announcements from Trump and Federal Reserve Chair Jerome Powell. Powell noted a slowdown in U.S. economic growth, with modest consumer spending and imports rising to avoid tariffs. Meanwhile, speculation about currency interventions, like those of the Swiss National Bank, adds to the market's complex landscape.

(With inputs from agencies.)