Investors turned to safe-haven currencies on Monday as global markets plunged due to growing concerns about a recession. The U.S. dollar fell against the yen and Swiss franc after losing more than 1.4% earlier in the session.
The dollar dropped 0.41% against the yen, to 146.255, continuing its 2% decline from last week. It also fell by 0.7% against the Swiss franc, hitting its lowest point in six months.
The euro initially rose by 0.7% to $1.1050 but struggled to maintain direction and ended flat at $1.096375. Meanwhile, the Australian and New Zealand dollars, along with the Swedish and Norwegian crowns, dropped against the dollar, reflecting concerns about the global economic outlook.
Gold and government bonds also saw increased demand as investors sought safe assets. The market reaction followed new tariffs imposed by U.S. President Donald Trump, which wiped out nearly $6 trillion in value from U.S. stocks last week.
Traders are now betting on the possibility of U.S. interest rate cuts in May to address the economic slowdown. More than 50 countries, including China, have engaged in trade talks with the White House.
While the dollar remains a traditional safe-haven asset, its status has weakened amid rising concerns over the impact of tariffs on U.S. growth.
European Union countries are expected to approve countermeasures on up to $28 billion worth of U.S. imports in response to Trump’s tariffs. The British pound also hit a one-month low, falling by 0.7% against the dollar.
