FX.co ★ Dollar Languishes Near 3-Year Low

The U.S. dollar index slipped to approximately 100 on Friday, nearing its lowest point in three years. This decline is attributed to ongoing economic concerns and diminishing confidence in U.S. assets. Investors remain apprehensive about the repercussions of President Trump's tariff policies, which have sparked fears of slower economic growth, despite a 90-day pause intended to facilitate trade negotiations. Trump's decision to increase tariffs on Chinese imports to 145% has intensified the trade conflict with Beijing, further affecting investor sentiment. Concurrently, the European Union has opted to delay its countermeasures for 90 days to allow for dialogue. Exacerbating the dollar's challenges, the U.S. core CPI rose by only 2.8% year-over-year — marking the slowest growth rate since March 2021 — and consolidating expectations of a dovish stance from the Federal Reserve. Consequently, the dollar weakened across the board, with the most significant losses recorded against the euro, Japanese yen, and Swiss franc.