US dollar weakens to 3-month low amid concerns over Trump tariffs hurting US economy

US dollar weakens to 3-month low amid concerns over Trump tariffs hurting US economy; analysts see safe haven status loss

On March 5, 2568, Bloomberg News reported that US dollar weakens to 3-month low Due to concerns about the negative impact of US tariffs on the economy

The Bloomberg Dollar Spot Index fell 0.6% on March 5, 68, to its lowest level since December 9, 67. The euro was the best performer against the US dollar as Germany unveiled plans to boost investment in defense and infrastructure, with the euro rising to 1.07 against the dollar.

The dollar has been weak this week as the U.S. began slapping tariffs on Canada and Mexico, fueling concerns that a global trade war would hurt economic growth and force major central banks to cut interest rates further. Swaps suggest the Fed will ease rates by 71 basis points by the end of the year, compared with 66 basis points on Friday.

Valentin Marinov, Head of Global Currency Strategy at Credit Agricole CIB said “The U.S. economy could slow further, forcing the Fed to resume monetary easing in the second half of this year… The Fed may have to end its tight monetary policy program to accommodate U.S. President Donald Trump’s fiscal spending plans.”

While the US dollar is often seen as the world's safest currency due to its liquidity and political stability, Deutsche Bank AG has questioned that. George Saravelos, the bank's global head of FX strategy, said the dollar could lose its safe haven status as global markets adjust to a new geopolitical order.

refer : bloomberg.com

Read news related to The full US economic situation can be found here.