The dollar slid to a 10-year low against the Swiss franc on Friday as investors lost confidence in its safety. The US imposed tariffs of up to 145% on Chinese goods, prompting China to retaliate with tariffs of 125%. This led to a global selloff that sent stocks and safe-haven Treasuries tumbling.
The dollar’s decline is partly due to concerns about the potential for a recession in the US. Foreign investors are diversifying their assets away from the US, leading to increased currency hedging and pressure on the dollar. The benchmark S&P 500 indices edged higher despite losing ground earlier in the session.
The Swiss franc surged against the dollar, with its value extending losses from the previous session when it reached a record low since January 2015. Gold prices soared past $3,200 an ounce, supported by the dollar’s weakness. European Central Bank President Christine Lagarde said her central bank is ready to maintain financial stability.
The euro also rose against the dollar, with its value extending gains from early February. The pound strengthened against the dollar, while the yuan fell sharply against the euro due to trade tensions. Investors are now turning to other safe-haven assets like the yen and Swiss franc, leaving the dollar under pressure.
Source: https://finance.yahoo.com/news/dollar-slide-decade-low-vs-013759732.html