Quick overview
- The US dollar is on track for its fourth consecutive weekly decline due to investor concerns over tariffs and economic stability.
- The Swiss franc has gained 8% against the dollar since April 2, reaching a decade-high resistance level.
- The euro and yen have also appreciated by about 5% against the dollar in recent weeks, with the euro still poised for a fourth weekly increase.
- The dollar briefly recovered against the yen after comments from Japan’s economy minister, but uncertainty remains regarding future agreements.
The greenback appeared destined to record its fourth consecutive weekly decline as investors fled the United States because of tariffs despite recovering from a seven-month low against the yen.
Investor confidence in US economic growth and stability has been undermined by the US’s threat, imposition, and subsequent postponement of massive tariffs, which have caused the dollar to decline.
Among the G10 currencies, the safe-haven Swiss franc has gained the most, by 8%, since April 2. It is currently testing strong resistance at a decade-high of 0.81 at 0.8151 per dollar.
The euro and yen are not far behind with gains of about 5% on the dollar in just over two weeks. The euro eased marginally to $1.1373 in the morning in Asia, still poised for a fourth consecutive weekly increase despite the European Central Bank’s anticipated 25 basis point rate cut later in the day.
When Ryosei Akazawa, Japan’s economy minister, stated that foreign exchange had not been discussed at the trade talks in Washington, the dollar recovered above 142 yen after plunging to a seven-month low of 14.62 yen early in the Asia session.
The yen had appreciated going into the meetings, in the hopes that the nations would agree to strengthen
However, gains could be undone if no agreement is reached, as the long yen is at its highest since 1986. The dollar index was poised to record its fourth consecutive week of losses at 99.5 on the Thursday session trade.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
