Tariff Turbulence: Dollar's Safe Haven Status Erodes Amid Global Recession Fears

The U.S. dollar fell against the Swiss franc following President Trump's tariffs, amid growing fears of a global recession. Stock markets faced volatility, and discussions around possible U.S. interest rate cuts emerged. Safe-haven currencies like the Swiss franc and Japanese yen strengthened, while the dollar's status seemed to decline.

The U.S. dollar weakened against the Swiss franc on Monday as fears of a global recession intensified. This followed President Trump's implementation of extensive tariffs on trading partners, which negatively impacted global stock markets. The S&P 500 struggled, and investors speculated that the U.S. may cut interest rates in May.

The dollar saw its lowest in six months against the franc, amidst mixed trading. Although typically a safe-haven currency, the status of the U.S. dollar appeared to be eroding. Marc Chandler from Bannockburn Global Forex noted that currencies like the Swiss franc and yen, known for stability, performed better.

Responding to U.S. tariffs, the European Commission proposed 25% counter-tariffs on various American goods. Meanwhile, investors anticipated further Federal Reserve rate cuts to support growth, with a significant chance of a cut by May. The forex market continues to navigate uncertainty.

(With inputs from agencies.)