The U.S. dollar fell sharply on Thursday<\/strong>, surrendering gains from the previous session as concerns over a prolonged trade war with China<\/strong> and its potential to tip the U.S. economy into a recession<\/strong> continued to rattle financial markets.<\/p>\n\n\n\n As of 05:25 ET (09:25 GMT)<\/strong>, the U.S. Dollar Index (DXY)<\/strong>\u2014which tracks the greenback against a basket of six major currencies\u2014was down 0.6% at 101.959<\/strong>, lingering near a six-month low<\/strong>, despite a brief overnight rebound.<\/p>\n\n\n\n The dollar\u2019s weakness reflects growing market anxiety over President Donald Trump\u2019s aggressive trade strategy<\/strong>, which included hiking tariffs on Chinese imports to an unprecedented 125%<\/strong> on Wednesday. While the President later granted a 90-day delay<\/strong> on imposing reciprocal tariffs for most U.S. trading partners, China was notably excluded<\/strong> from that reprieve.<\/p>\n\n\n\n Adding to the pressure, ECB policymaker Francois Villeroy de Galhau<\/strong> criticized Trump\u2019s policies, saying they had “eroded global confidence in the U.S. dollar”<\/strong>, further underlining growing skepticism abroad.<\/p>\n\n\n\n Traders are now awaiting the release of the U.S. Consumer Price Index (CPI)<\/strong> for March<\/strong>, which could offer insights into inflationary pressures prior to the implementation\u2014and subsequent delay\u2014of many of Trump\u2019s tariffs<\/strong>.<\/p>\n\n\n\n Economist expectations:<\/strong><\/p>\n\n\n\n A cooler-than-expected reading could boost expectations for Federal Reserve interest rate cuts<\/strong>, further pressuring the dollar.<\/p>\n\n\n\n In Asia, the Japanese yen strengthened<\/strong> sharply:<\/p>\n\n\n\n Speculation grew that the Bank of Japan<\/strong> could continue hiking rates, after Governor Kazuo Ueda<\/strong> reaffirmed that policy normalization was still on track, despite global uncertainty.<\/p>\n\n\n\n The ongoing U.S.-China tariff standoff<\/strong> continues to cloud the yuan\u2019s outlook, with both governments digging in<\/strong> and showing little inclination to de-escalate<\/strong>. China has vowed to \u201cfight to the end<\/strong>,\u201d adding further strain to bilateral relations.<\/p>\n\n\n\n The dollar remains under pressure as traders assess the long-term economic risks posed by the U.S. trade agenda<\/strong>, especially in light of softer inflation expectations<\/strong> and potential policy shifts from the Federal Reserve<\/strong>. With sentiment fragile, any further escalation in U.S.-China tensions<\/strong> could deepen risk aversion\u2014potentially benefiting safe-haven currencies like the yen<\/strong> and Swiss franc<\/strong>, while continuing to weigh on the greenback.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar fell sharply on Thursday, surrendering gains from the previous session as concerns over a prolonged trade war with China and its potential to tip the U.S. economy into a recession continued to rattle financial markets. As of 05:25 ET (09:25 GMT), the U.S. Dollar Index (DXY)\u2014which tracks the greenback against a basket …<\/p>\n","protected":false},"author":9,"featured_media":95351,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[],"class_list":["post-113504","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=113504"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113504\/revisions"}],"predecessor-version":[{"id":113505,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113504\/revisions\/113505"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/95351"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=113504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=113504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=113504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nDollar Pressured by Tariff Fallout and Policy Uncertainty<\/h3>\n\n\n\n
\n\n\n\nMarket Eyes U.S. CPI for Inflation Clues<\/h3>\n\n\n\n
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\n\n\n\nEuro and Pound Climb as Dollar Weakens<\/h3>\n\n\n\n
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\n\n\n\nYen Strengthens on Hawkish BOJ Tone<\/h3>\n\n\n\n
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\n\n\n\nChinese Yuan Edges Lower Amid Trade War Jitters<\/h3>\n\n\n\n
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\n\n\n\nOutlook<\/h3>\n\n\n\n