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US Dollar slides further as tariff tensions escalate
Wednesday, 5 March 2025 01:01 WIB | US DOLLAR |DOLLAR

The US Dollar Index (DXY), which measures the Greenback's value against six major currencies, suffers another leg lower on Tuesday, adding to Monday's losses and losing the key support of 106.00. Investors dumped the US Dollar after the US confirmed new tariffs on Canada, Mexico, and China with no last-minute extensions granted. As Canada and China announced countermeasures, further stoking market volatility.
US Dollar tumbles amid tariff battle
Canada retaliates with 25% tariffs on US goods worth C$30 billion with more to come in three weeks. In line, China pushes back on US tariffs, adding to global trade tensions.
US Treasury Secretary Scott Bessent reassures that rates will come down and expects Chinese manufacturers to absorb tariffs.
Locally, after a set of mixed data, concerns rise over stagflation as slowing growth and persistent inflation threaten the US economy.
Regarding the Federal Reserve's next steps, the CME FedWatch Tool indicates an increasing probability of a Fed rate cut later this year with investors growing confident of a cut in June.
Equities trade mixed with uncertainty over tariffs weighing on market sentiment.

Source: Fxstreet

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