The U.S. dollar has dropped to a three-month low amid growing concerns over slowing economic growth and the impact of new tariffs.
President Donald Trump’s recent move to impose a 25% tariff on goods from Mexico and Canada, along with a doubling of duties on Chinese products to 20%, took effect at 12:01 a.m. EST, weighing on the currency.
Despite expectations that increased tariffs might strengthen the dollar as fears of a trade war mount, weak domestic economic data and declining U.S. bond yields have kept the dollar under pressure. The U.S. dollar index, which tracks the currency against six major peers, fell 0.54% to 105.96, its lowest level since December.
Analysts noted that while tariffs are broadening to include more U.S. trading partners, soft domestic activity is hindering any potential rally. “While the U.S. is now broadening its tariff regime to Canada and Mexico, weak domestic U.S. activity is preventing the dollar from strengthening on the tariff news,” said Chris Turner, global head of markets at ING.
Investors have shifted to traditional safe-haven currencies such as the Japanese yen and Swiss franc, which saw gains of almost 1%, as uncertainty and fears of economic slowdown weighed on global markets. The Canadian dollar and Mexican peso also experienced modest declines following the tariff announcements, though market participants remain hopeful that the tariff hikes may be short-lived if negotiations lead to rapid relief.
In addition to these moves, China announced plans to impose further tariffs of 10-15% on certain U.S. imports starting March 10, while both Canada and Mexico have signaled retaliatory measures. The euro and sterling have risen as the absence of tariffs on European Union goods and a narrowing gap in bond yields have made them more attractive alternatives to the dollar. Meanwhile, U.S. 10-year Treasury yields fell to their lowest level since October at 4.115%.
Speculators have been betting on a continued rise of the yen, positioning themselves for potential interest rate hikes by the Bank of Japan, while China’s yuan has also seen a modest increase amid a strengthening bias in its daily official guidance.
Residents in Syria’s Kurdish-majority city of Qamishli have stepped up volunteer patrols amid growing pressure from the country’s Islamist-led gov...
Sanctions are a long-used tool designed as an alternative to military force and with the objective of changing governments’ behaviour, but they also...
Azerbaijan’s participation in the United States-backed Board of Peace reflects a clear calculation of national interest, according to Chingiz Mammad...
Millions of people in Britain are struggling to afford basic necessities, with a new report warning that the number living in the deepest levels of po...
A clock in a Tel Aviv square that became a rallying point for Israelis demanding the release of hostages taken during the October 2023 Hamas attack wa...
The U.S. dollar's share of global reserves fell to nearly 40% at the end of 2025, according to the International Monetary Fund (IMF), which says it's 10% lower than at the start of 2024. However, gold has risen and overtaken the dollar to be above 50% in global reserves according to the IMF data.
The U.S. dollar has strengthened against major peers on Tuesday, while the euro fell following slower-than-expected inflation in Europe. Market movements were relatively subdued as investors focused on upcoming U.S. economic data.
The U.S. Treasury has released a draft $1 coin design featuring President Donald Trump as part of plans to mark 250 years since American independence in 2026.
De-dollarisation, the move away from the U.S. dollar in global trade and finance, is no longer a fringe idea. As geopolitical tensions rise and new financial tools emerge, could this shift really transform the global economy?
Minnesota Governor Tim Walz has activated the state’s National Guard following the fatal shooting of a U.S. citizen in Minneapolis, an incident that has triggered protests and intensified tensions between state and federal authorities.
Iran’s Foreign Ministry has strongly rejected a U.S. magazine report on the death toll during January unrest. Nationwide protests erupted in response to soaring inflation and a national currency crisis.
A mosaic portrait of Pope Leo XIV was illuminated on Sunday at the Basilica of St. Paul Outside the Walls in Rome, continuing a centuries-old Vatican tradition marking the election of a new pope.
The death toll from nationwide protests in Iran has climbed to 6,126, according to the U.S.-based Human Rights Activists News Agency (HRANA).
Serbian President Aleksandar Vučić, often viewed as a bellwether for the complex diplomatic currents between the Kremlin and the West, has issued a startling prediction regarding the endgame of the war in Ukraine.
Chevron is in talks with Iraq’s oil ministry over potential changes to the commercial framework governing the West Qurna 2 oilfield, one of the world’s largest producing assets, after Baghdad nationalised the field earlier this month following U.S. sanctions imposed on Russia’s Lukoil.
Argentina's economic activity shrunk 0.3% in November compared with the same month last year, marking the first monthly contraction of 2025, data from Argentina's national statistics agency showed on Wednesday.
Wall Street closed sharply lower on Tuesday as global markets fell after U.S. President Donald Trump’s new tariff threats against Europe unsettled investors and revived fears of renewed volatility.
Global markets are rattled after U.S. President Donald Trump threatened new tariffs on eight European countries over Greenland, sending the euro to a seven-week low and raising concerns about renewed transatlantic trade tensions.
Hong Kong and Shanghai will sign a memorandum of understanding next week to establish a cross-border gold trade clearing system, a move aimed at boosting Hong Kong’s role as an international gold trading hub, Financial Secretary Paul Chan said.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment