Dollar Dips as Tariff Tensions Shake Investor Confidence

The U.S. dollar, after facing a tumultuous week due to President Trump's tariff plans, steadies but near a three-year low. The recent exclusion of some electronics from tariffs provided temporary relief, yet investor confidence in the dollar as the global reserve currency remains shaky amid de-dollarisation trends.

The U.S. dollar managed a slight recovery on Monday, yet remained near its lowest level in three years. This follows an unsettling week marked by volatility from President Donald Trump's tariff maneuvers, leaving investors wary of the dollar's reliability as a global reserve currency.

Last Friday's White House decision to exempt certain electronics like smartphones and computers from tariffs brought some stability. However, President Trump signaled this reprieve might be short-lived, keeping markets on edge. "It's been a haphazard and heavy-handed approach, adding significant uncertainty," noted Tony Sycamore of IG Markets.

The euro finished a remarkable surge last week and continued to gain as investors shift away from U.S. assets. Meanwhile, analysts, including Deutsche Bank's George Saravelos, discuss the broader trend of 'de-dollarisation' as global markets re-evaluate the structural role of the dollar.

(With inputs from agencies.)