The United States Dollar dropped to a five-month-low against the Japanese Yen and the Swiss franc on Monday, March 10, as the markets witnessed concerns about Donald Trump’s tariffs and a potential economic slowdown in the US, reported the news agency StuffsEarth.
According to the report, the currency markets are fixated on tensions over a potential trade war, and investors fear a potential slowdown in the US economy.
The US dollar dropped 0.76% to 146.91 against the Japanese yen on Monday, and the greenback hit its intraday low at 146.625, its lowest level since October 2024. The US dollar also dropped 0.06 per cent to 0.879 against the Swiss franc, hitting its lowest levels since early December 2024.
According to Bloomberg’s US Dollar Spot Index, the US greenback was trading 0.03 per cent higher at 103.866 as of 12:12 p.m. (EDT) on March 10.
“Much of the time everything is very U.S. centric within FX: whether the dollar is overall stronger or weaker, etc.,” Eugene Epstein, the head of trading and structured products, North America, at Moneycorp, told the news agency.
“But right now, we have a lot of individual stories coming up like in Europe, the major move in the euro has been driven by potential increase in government spending and the likelihood that European Central Bank may be a little more hawkish than they were planning,” Epstein told the news agency on Monday.
US Fed Rate Cut
Market traders pegged that the US Federal Reserve will cut 75 basis points of the key benchmark interest rates in this year, according to LSEG data cited in the news report. They are expecting a Fed rate cut as early as June 2025, as investors prepare themselves for the US inflation data release on Wednesday.
“Reading between the lines, it seems to me that the Trump administration clearly wants a weaker dollar regardless of what they formally say or not,” said Epstein, reported the news agency.
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