A gauge of the USdollar slid to a five-month low as traders braced for the impact of higher American tariffs on the economy.
The Bloomberg Dollar Spot Index fell as much as 1 per cent to the lowest since November, with the US dollar sliding sharply versus the yen and Swiss franc. The euro appreciated more than 1 per cent to the strongest in six months, approaching the closely watched $1.10 level. Stocks in Europe slumped 1.8 per cent.
US President Donald Trump announced Wednesday he will apply at least a 10 per cent tariff on all exporters to the US, with even higher duties on some 60 nations to counter large trade imbalances with the US. Canada said it will fight tariffs with countermeasures while China has also vowed to retaliate.
The harsher-than-expected tariffs threaten to raise prices on trillions of dollars in goods imported into the US each year. US stock futures tumbled about 3 per cent, surpassing losses in Chinese shares even as the Asian nation faces a tariff of well above 50 per cent on many goods.
“The aggravation of US growth concerns on the tariff news and related further falls in US stocks has meant that the dollar isn’t enjoying its traditional safe haven, reserve currency status support,” said Ray Attrill, head of foreign-exchange strategy at National Australia Bank Ltd.
