The U.S. dollar weakened against the Japanese yen and the Swiss franc on Monday, as markets responded to ongoing trade tensions and concerns over a potential U.S. economic slowdown.
The dollar dropped 0.76% to 146.91 against the yen, reaching a low of 146.625 during the session, its lowest level since October last year. It also weakened 0.06% to 0.879 against the Swiss franc, its lowest level since December.
The euro, meanwhile, was 0.03% higher at $1.083350, remaining near a four-month high as markets awaited details on potential European spending boosts. The euro had its best week in 16 years last week, largely driven by expectations of increased government spending in Europe.
European Union finance ministers met on Monday to discuss funding options for defence, as European nations seek to maintain support for Ukraine amid concerns about U.S. military aid.
The Federal Reserve is expected to cut rates by 75 basis points this year, with a full rate cut priced in for June, as traders await U.S. inflation data set for release on Wednesday. On currency futures markets, investors reduced net long dollar positions to $15.3 billion from $35.2 billion in January.
In other currency movements, the Norwegian krone gained against both the U.S. dollar and the euro, reaching its strongest level against the dollar since October, driven by concerns over inflation and central bank policy. The Chinese yuan slipped after data showed a significant drop in the consumer price index for February, marking the sharpest decline in 13 months.
The Canadian dollar weakened 0.33% against the greenback to C$1.4415 per dollar. Meanwhile, former central banker Mark Carney’s victory as leader of Canada’s Liberal Party positions him for a potential clash with the Trump administration over trade tariffs.
