FX.co ★ Dollar Weakens as Tariff Concerns Intensify

The US Dollar Index dropped below 104 on Monday, marking its third successive decline amid escalating concerns regarding the economic repercussions of newly proposed tariffs. Over the weekend, President Donald Trump reiterated his intention to implement reciprocal tariffs on all nations this week. Reports suggest he has encouraged his advisors to adopt a more assertive approach to trade policies. The market is increasingly anxious that such measures could provoke retaliation from major trade allies, rekindle inflation, and dampen economic growth. Investors are also eagerly anticipating Friday’s monthly jobs report, which is expected to offer insights into the labor market's resilience and potentially shape expectations for the Federal Reserve's future monetary policy. The US dollar experienced its most significant declines against the safe-haven yen, with marked weakening noted against both the euro and the British pound.