Currency Markets on Edge Amid Trump Tariff Turmoil

Safe havens like the yen and Swiss franc hit six-month highs as investors seek refuge amid global financial market disruptions due to President Trump's tariffs. The U.S. dollar faces broad losses, and concerns about recession grow, affecting global stocks and currencies. Experts anticipate potential Fed interest rate cuts.

Safe havens including the yen and Swiss franc reached six-month highs on Tuesday as financial markets confronted growing recession fears following President Donald Trump's extensive tariffs. Currency markets remained fragile yet notably calm in Asian trading after a tumultuous 24 hours. The U.S. dollar saw broad losses against these secure currencies as traders evaluated the situation.

Global stock markets have seen sharp declines since Trump's tariff announcement last week, prompting quick responses from China and the European Union with their own heightened tariff proposals. This has consequently driven investors towards safer currencies such as the Japanese yen and Swiss franc over the last week.

The euro increased by 0.58% to $1.0967, while sterling rose 0.4% to $1.2776, moving from a one-month low. Meanwhile, the dollar's traditional status as a safe-haven asset seems to be weakening due to tariff uncertainties, sparking fears of a potential U.S. growth slowdown.

(With inputs from agencies.)