Dollar Extends Losses, Approaches 6-Month Lows
The dollar index experienced a continued decline for the second straight session on Wednesday, dropping to 102.2 and approaching the six-month lows reached last week. Increasing anxieties regarding global economic growth prospects, particularly the potential for a US recession prompted by escalating trade tensions, have negatively impacted investor confidence. This situation has driven demand towards other traditional safe-haven currencies, namely the Japanese yen and Swiss franc. In a retaliatory move, China has declared an 84% tariff on US imports starting Thursday, significantly exceeding the initially projected rate of 34%. This decision follows the latest series of US tariffs implemented today, imposing a 104% levy on Chinese products. The dollar is further pressured by the ongoing sell-off in US Treasuries, influenced by speculation that foreign investors are reducing their holdings amid rising uncertainty.
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