Dollar Hits Six-Month Low Amid Tariff Anxiety

The U.S. dollar has sharply declined against major currencies, hitting six-month lows, following President Donald Trump's announcement of a 10% tariff on all imports, with steeper rates for key trading partners. Investors are increasingly concerned that these tariffs could lead to a global recession, prompting a rush towards safe-haven assets like the yen and Swiss franc. The euro and British pound have surged, reflecting a broader loss of confidence in the dollar, which has fallen over 6% this year—the worst start since 1995. Analysts warn that the economic fallout from the tariffs could trigger a 'spiral of doom,' with potential retaliatory measures from other countries exacerbating the situation. Markets are now pricing in expectations of multiple Federal Reserve rate cuts to mitigate the impact. As global stocks plummet, the economic outlook appears increasingly uncertain, raising questions about the sustainability of these trade policies.