Global Market Jitters: Dollar Dips Amid U.S.-Beijing Trade Tensions

The dollar hit a decade-low against the Swiss franc as U.S. tariffs and retaliation from Beijing weaken its safe-haven status. Market selloffs have also impacted U.S. Treasuries, with safe havens like the yen and euro seeing gains. Central banks are carefully navigating this turbulent financial landscape.

The dollar continued its decline on Friday, reaching a decade-low against the Swiss franc, as the U.S.-China trade conflict continues to erode its reputation as a safe haven. Beijing's latest retaliation in the form of increased tariffs on U.S. goods has fueled further uncertainty.

This economic friction has triggered a global selloff, severely impacting stocks and U.S. Treasuries, with 10-year yields poised for a significant weekly rise. "We've shifted from a dollar deleveraging to a full-blown dollar crisis," says ING FX strategist Francesco Pesole, highlighting market sentiments against U.S. policies.

The euro and yen have strengthened in light of high liquidity and a flight from the dollar, while European and Japanese central banks monitor the situation closely. Meanwhile, rising tensions have prompted central banks, such as the ECB, to prepare measures ensuring financial stability during these uncertain times.

(With inputs from agencies.)