Dollar Edeges up From 11-Week Low Amid Soft U.s. Data, Tariff Uncertainty
The US dollar rebounded from its weakest level in 11 weeks on Wednesday as investors sought refuge in safe-haven assets amid weak economic data and uncertainty over tariff implementation. The currency's gain was partly attributed to signs of deceleration in the US economy and concerns about the impact of US policy, which sent interest rates volatility and sticky inflation rising. The US dollar index rose 0.30% to 106.56, driven by policy uncertainty that can delay business undertakings and be disinflationary.
- The rise of safe-haven assets, such as the US dollar, in response to global economic uncertainty highlights the complex relationships between monetary policy, trade tensions, and currency markets.
- Will the ongoing uncertainty surrounding tariffs lead to a sustained shift in investor sentiment towards safer asset classes, or will other factors ultimately prevail?