FX.co ★ Dollar Falls for 2nd Day

The dollar index experienced a decline for the second straight session on Wednesday, retreating to 102.3 and inching closer to the six-month lows reached the previous week. Concerns over global economic growth, highlighted by the potential of a US recession due to intensifying trade tensions, weighed on investor sentiment and boosted demand for traditional safe-haven currencies like the Japanese yen and Swiss franc. Additionally, the dollar faced pressure from ongoing sell-offs in US Treasuries, driven by speculation that foreign investors are reducing their holdings amid rising uncertainty. On Wednesday, the latest round of reciprocal US tariffs, which includes a 104% duty on Chinese imports, took effect, heightening fears of a more extensive economic impact.