Global Currencies in Turmoil Amid US Tariff Wars

The U.S. dollar faces decline against safe-haven currencies like the yen and Swiss franc due to retaliatory tariffs imposed by major economies on U.S. goods. The move resulted in widespread market sell-offs, affecting U.S. Treasuries and prompting calls for renegotiation of trade agreements.

The U.S. dollar weakened against safe-haven currencies such as the yen and the Swiss franc on Wednesday as tit-for-tat trade measures in response to U.S. tariffs rocked global markets. Meanwhile, the euro gained, signaling a tumultuous day for major currencies.

President Donald Trump's aggressive tariff strategy took effect this week, leading to swift retaliation from trading partners, notably China which imposed an 84% tariff on U.S. goods. The European Union followed suit with its first countermeasures, leaving investors hopeful for quick negotiations to prevent further economic fallout.

U.S. Treasury securities were not spared in the turmoil, as heavy liquidation suggested investors offloading safe assets amidst portfolio losses. The dollar's struggles highlight the year-long narrative of economic uncertainty and currency instability.

(With inputs from agencies.)