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.
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Nigerian President Bola Tinubu, chair of the Economic Community of West African States (ECOWAS), called on regional leaders Saturday to prioritize economic unity, policy coordination, and stronger investment to unlock West Africa’s full potential.
Iran has strongly condemned the recent U.S. airstrikes on its nuclear facilities in Fordow, Natanz, and Isfahan, calling them a violation of the UN Charter, international law, and the Non-Proliferation Treaty (NPT)
Pope Leo XIV spoke to political leaders in Rome on Saturday, urging them to remember that artificial intelligence is just a tool — not a replacement for humans.
Eight men were arrested Friday morning following a violent clash near the Iranian embassy in London, police confirmed.
In a televised address on Saturday night, U.S. President Donald J. Trump announced that American forces, in coordination with Israel, had conducted precision strikes on Iran’s Fordow, Natanz, and Isfahan nuclear sites, aiming to dismantle Tehran’s enrichment capabilities.
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