U.S. Dollar Declines Amid Trump Tariff Uncertainty, Markets React

The U.S. dollar fell sharply on Monday as investors weighed the implications of President Donald Trump’s renewed tariff threats. The dollar index dropped 0.11% to 99.15, extending its recent volatility amid growing trade war anxieties.

Currency markets showed broad weakness in the greenback, with USD/JPY falling 0.3% to 143.57 and the euro gaining 0.2% to $1.1372. The Australian dollar and British pound both advanced 0.3% as risk sentiment shifted.

Trump’s announcement to double steel and aluminum tariffs to 50% starting Wednesday has reignited fears of slowing economic growth and inflationary pressures. The dollar has been particularly sensitive to trade war developments, with technical analysis showing consistent declines following protectionist rhetoric.