Dollar's Slump Continues Amid Trade Turmoil

The U.S. dollar is experiencing its fourth consecutive weekly loss amid trade tensions and tariffs, pushing investors towards other currencies. The yen, euro, and Swiss franc are gaining ground, with talks between the U.S. and Japan not addressing forex issues. The trend contributes to a global shift away from U.S. assets.

The U.S. dollar is poised for a fourth consecutive weekly decline as tariffs and trade talks erode investor confidence in American assets. Despite hitting a seven-month low against the yen, recent negotiations with Japan have not broached the subject of currency exchange.

Investor sentiment has shifted, with the Swiss franc gaining 8% since April 2, leading G10 currencies with a near decade-high value against the dollar. Similarly, the euro and yen have appreciated around 5% on the dollar in a fortnight. The euro is set for another week of gains, even with a looming ECB rate cut.

The U.S. dollar index rests at 99.5, forecasting another week of losses as market activity lightens approaching Easter. Despite positive U.S. retail sales data and a steady interest rate outlook by Fed Chair Powell, the selling momentum persists. Citi analysts suggest an overhang of U.S. assets could further depress the dollar.

(With inputs from agencies.)