After "Trump Tariffs," the Dollar Falls Broadly

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After "Trump Tariffs," the Dollar Falls Broadly
The U.S. dollar fell broadly on Thursday, while the euro rose after U.S. President Donald Trump announced larger-than-expected tariffs on major trading partners, causing a shock to the markets and prompting investors to seek safe-haven assets such as the yen and Swiss franc.اضافة اعلان

Trump announced that he would impose a basic 10% tariff on all imports into the United States, along with higher tariffs on several of the country's largest trading partners. These tariffs are set to take effect on April 9 and appear to target about 60 countries.

Trump had previously imposed tariffs on aluminum, steel, and cars, in addition to increasing tariffs on all goods coming from China.

The new tariffs escalate the trade war Trump began when he returned to the White House, shaking the markets amid rising concerns that a full-scale trade war could lead to a sharp slowdown in the global economy.

Kyle Rodda, senior financial markets analyst at Capital.com, said, "The markets are dominated by a risk-averse sentiment, with assessments of the potential for global economic growth to decline."

The Australian dollar, sensitive to risk, dropped 0.5% to 0.6268 USD, while the New Zealand dollar declined by 0.26% to 0.5730 USD.

The new tariffs drove investors to seek protection in traditional safe-haven assets like the Japanese yen and Swiss franc. The yen rose about 1% to 147.99 against the dollar, while the Swiss franc strengthened to 0.8787 per dollar.

The euro gained following the tariff announcements, with its rise reaching 0.43% at 1.0875 USD in early Asian trading hours. The British pound rose 0.28% to 1.3047 USD.

Rodrigo Catril, currency strategist at National Australia Bank, said that the euro's resilience is likely due to Europe's focus on supporting its economy from the impact of U.S. tariffs, rather than seeking retaliation.

The Chinese yuan fell to a one-month low immediately after the tariffs were announced. In emerging markets, the Mexican peso declined by 0.25% to 20.2520 against the dollar.

Canada and Mexico, the United States' largest trading partners, are already facing 25% tariffs on many goods. No additional tariffs will be imposed on them under the Wednesday announcement. (Al-Mamlakah)