Dollar Dive: Tariffs Shatter Safe Haven Status

The dollar hit its lowest in a decade against the Swiss franc as U.S. tariffs impacted its safe haven status. Beijing's retaliatory tariffs and market volatility led to a dollar decline against major currencies, highlighting investor concerns over U.S. economic policies and the global economic landscape.

The U.S. dollar spiraled downward on Friday, plunging to a ten-year low against the Swiss franc and boosting the euro past $1.14. The descent followed the U.S.'s tariff actions, which eroded the dollar's reputation as a safe haven during turbulent times.

Beijing's announcement that it would implement 125% duties on U.S. products from Saturday exacerbated a global market sell-off. This slump had an adverse effect, with the dollar dipping to 0.81150 Swiss francs, its lowest level since January 2015, extending Thursday's 4% decline.

The euro and the yen gained significantly against the dollar, reflecting a widespread lack of confidence in U.S. economic policies. Market experts, like Commerzbank's Michael Pfister, highlight the precarious path for central banks managing currency appreciation. China, meanwhile, signaled a cautious approach to devaluing the yuan.

(With inputs from agencies.)