Global Markets Struggle Amid Tariff Threats and Monetary Policy Shifts

Global financial markets remain volatile due to weak U.S. confidence data and the looming threat of new tariffs. British markets are particularly stressed with expected cuts to spending plans as currency shifts continue in response to changing inflation and monetary policies worldwide.

The dollar remained largely stable on Wednesday, as weak U.S. consumer confidence and imminent tariff threats weighed on recent gains. Meanwhile, the British economy focused on Chancellor Rachel Reeves' spending cuts, aimed at reassuring investors amid faltering growth.

As markets braced for upcoming tariff announcements from President Trump, the euro dipped to a three-week low. In contrast, Russia's rouble gained strength, buoyed by U.S. deliberations over easing agricultural sanctions against Russia.

Sterling declined following a slowdown in British inflation, prompting discussions of possible rate cuts by the Bank of England. Amidst fluctuations in major currencies, emerging markets also felt the pressure, particularly in Turkey and Indonesia.

(With inputs from agencies.)