Dollar Dips Amid Trade and Tariff Tensions

The U.S. dollar dropped against major currencies like the yen and euro. Market reactions stem from concerns about President Trump's trade policies, especially tariffs. The dollar hit a record low against the Taiwan dollar. Speculation over trade deals and Fed rate decisions further impacted the market.

The U.S. dollar weakened against key global currencies, with significant dips observed against the yen and euro. This decline comes as markets grapple with uncertainty surrounding President Trump's trade policies and their economic ramifications.

During a Sunday interview, Trump reiterated his belief in tariffs on U.S. imports, suggesting they would ultimately benefit American wealth. He unveiled a new 100% tariff on foreign films. Market participants have been unsettled by Trump's steadfast stance on tariffs, impacting the dollar's value.

Trump's critique of Federal Reserve Chair Jerome Powell continued, despite assurances Powell would remain in his role. While markets are no longer expecting a rate cut in June—with expectations now shifting to July—the latest ISM report offered a brief respite with unexpected growth in the U.S. services sector.

(With inputs from agencies.)