Market Sentiment Sours Ahead of Trade Talks Reveal

Dollar slips on growth fears before next tariff announcement

Mumbai: The US dollar weakened against major currencies on Friday as investors grew increasingly concerned about the impact of tariffs on the global economy, ahead of the next round of trade announcements by the Trump administration.

The dollar index, which tracks the currency against a basket of six major rivals, fell 0.2% to 94.35, its lowest level since March 2018.

The move lower came as investors factored in the potential for further tariffs on Chinese goods, which could exacerbate the global trade tensions and hurt economic growth.

The US is set to announce its next set of tariffs on Chinese goods on Monday, with reports suggesting that the Trump administration is considering imposing duties on an additional $50 billion worth of Chinese imports.

The move has sparked concerns that the escalating trade tensions could hurt global growth, with some economists warning that the tariffs could shave off 0.5% to 1% from the US GDP.

The dollar's decline was also supported by a rebound in the euro, which rose 0.3% to $1.1345 after the European Central Bank's decision to keep interest rates unchanged.

The yen, which is often seen as a safe-haven currency, rose 0.4% to 111.25 per dollar, as investors sought shelter from the trade tensions.

The dollar's weakness also led to a gain in the pound, which rose 0.2% to $1.3135 after the UK and European Union agreed to a new Brexit deal.

The dollar's decline was also supported by a rebound in the euro, which rose 0.3% to $1.1345 after the European Central Bank's decision to keep interest rates unchanged.

The yen, which is often seen as a safe-haven currency, rose 0.4% to 111.25 per dollar, as investors sought shelter from the trade tensions.

The dollar's weakness also led to a gain in the pound, which rose 0.2% to $1.3135 after the UK and European Union agreed to a new Brexit deal.