The U.S. dollar found some support on Monday but remained near a three-year low after a volatile week driven by President Donald Trump’s shifting tariff policies. Markets remain on edge as Trump’s abrupt imposition and partial postponement of tariffs continue to create confusion and weigh on investor sentiment.
Despite a brief reprieve—after the White House excluded smartphones, computers, and other Chinese electronics from steep tariffs—Trump warned the move would be short-lived, deepening market uncertainty. “It’s been handled haphazardly and heavy-handedly,” said IG analyst Tony Sycamore, emphasizing persistent market volatility.
The dollar rose 0.34% against the Swiss franc after hitting a decade-low last week, while the euro eased 0.13% to $1.1344 following a 3.6% surge that pushed it to a three-year high. Analysts forecast the euro could reach $1.20 by late July as investors continue moving funds out of U.S. assets.
Concerns about the dollar’s role as the world’s reserve currency are accelerating de-dollarisation trends. Deutsche Bank’s George Saravelos pointed to a combined collapse in the U.S. currency and bond market, noting the steep sell-off in Treasuries and the rapid unwinding of basis trades by hedge funds as key pressures on the dollar.
The dollar index hovered near 99.73, close to Friday’s low. U.S. 10-year Treasury yields remained elevated at 4.47%, marking the largest weekly rise in decades. Saravelos warned that the global financial system is recalibrating, and the dollar's dominance is under serious reassessment.
Elsewhere, the yen dipped 0.2% to 143.79, the British pound fell 0.33% to $1.3084, and the Aussie dollar extended last week’s gains, up 0.15% to $0.63035. The New Zealand dollar rose 0.33%, while the offshore yuan weakened 0.17% to 7.2941 ahead of onshore trading.


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