Dollar Stumbles as Trump Flip-Flops—Asian Markets Tumble in Domino Effect

Another day, another political curveball shakes global markets. The dollar takes a hit after Trump’s latest policy reversal—because consistency is overrated in modern politics.

Meanwhile, Asian equities slide like a rookie trader’s portfolio after margin calls. Who needs stable fundamentals when you’ve got headline whiplash?

Bonus jab: At least crypto traders are used to volatility—unlike traditional finance folks still clutching their pearls over 2% swings.

Traders are bracing for upcoming market movements

Several Federal Reserve policymakers will give their speeches this week, along with Friday’s U.S. Core PCE price index. In Tokyo, a two-day annual conference organized by the Bank of Japan and its think tank has already begun on Tuesday. Global central bankers gathering there are expected to discuss economic growth and inflation.

Currency markets showed a steady drift away from the dollar. The greenback was on course for a fifth straight monthly loss, the longest slide since 2017. The euro hovered NEAR a one-month high at $1.14035. The yen strengthened nearly 0.5 percent to ¥142.18 per dollar.

Trump’s unpredictable trade moves and worries over the US deficit have eroded confidence in American assets, weighing on the dollar. “A U.S. dollar regime change could be in the making in the long term after it appears to have peaked recently,” said David Meier, economist at Julius Baer.

“Erratic U.S. policymaking, the tense fiscal situation, and large external indebtedness, against the backdrop of the twin deficit, suggest that a weaker USD is the route of least resistance,” David added.

As the dollar loses some of its safe-haven appeal, investors have looked elsewhere. Gold, which touched record highs earlier this year, last traded 0.28 percent lower at $3,332.91 an ounce.

Oil prices slipped as traders weighed whether OPEC+ WOULD agree to raise output at a meeting this week. Brent crude futures eased 0.1 percent to $64.67 a barrel, while U.S. West Texas Intermediate moved down 0.16 percent to $61.43 a barrel.

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