Global Economic Unrest: Dollar Weakens Amid Trump's New Tariff Shock

The dollar weakened against major currencies after President Trump announced new tariffs on U.S. trading partners, sparking global market turmoil. The move intensified fears of a trade war that could slow global economic growth. The euro and other currencies gained as investors sought safer assets.

The value of the dollar dropped significantly on Thursday, following President Donald Trump's unexpected escalation in tariffs against key U.S. trading partners. This move sent ripples throughout global markets, prompting investors to gravitate toward safer assets like the yen and Swiss franc, while the euro experienced a notable rally.

With a new 10% baseline tariff on all U.S. imports, the stage is set for a potential full-scale trade war as markets remained jittery over the possible economic repercussions. The dollar index, a key measure of the currency's strength, tumbled to its lowest level since early October, while the euro appreciated to a six-month peak.

The sweeping tariffs also affected Asian currencies, with the Chinese yuan declining to its weakest position since February, amid mounting concerns over retaliatory actions. As the global economic outlook becomes increasingly uncertain, markets brace for turbulent times.

(With inputs from agencies.)