Dollar Weakens Ahead of Trump’s Tariff Deadline, Hits Multi-Year Lows

The U.S. dollar continued to decline on Monday, trading near multi-year lows against major currencies as markets braced for potential trade disruptions tied to President Donald Trump’s looming tariff deadline. The greenback hovered near its weakest level since 2021 versus the euro and its lowest since 2015 against the Swiss franc.

Traders remain on edge ahead of Wednesday’s conclusion of Trump’s 90-day tariff moratorium, dubbed “Liberation Day.” Most U.S. trade partners are expected to face sharply higher tariffs unless new agreements are reached. So far, only the UK, China, and Vietnam have secured deals with the White House.

Trump announced Friday that he would reveal a list of countries receiving letters with updated tariffs, signaling that new duties will take effect for many nations starting August 1. U.S. Treasury Secretary Scott Bessent confirmed that several major announcements are expected in the coming days.

Despite the uncertainty, some analysts anticipate a more measured market reaction this time. “Market volatility appears inevitable when the pause officially ends and new tariff levels are announced,” said James Kniveton, senior FX dealer at Convera. However, he noted that “current proposals are largely anticipated,” and markets may be pricing in further extensions.

In Monday’s early Asian trading, the dollar slipped 0.1% to 0.7939 Swiss franc, approaching the July 1 low of 0.7869 — a level not seen since January 2015. It also dipped 0.1% to 144.49 yen. The euro edged down 0.1% to $1.1780, staying close to the July 1 peak of $1.1829, last reached in September 2021. Meanwhile, the U.S. dollar index remained flat at 96.967, just above last week’s 3-1/2-year low of 96.373.