The Bloomberg Dollar Index experienced another decline as worries over an escalating trade war dampened investor interest in U.S. assets. During early trading in London, the dollar weakened against nearly all G-10 currencies, with no signs of easing trade tensions. The euro saw a notable rise of 0.9% at one point.
According to analysts, discussions about additional tariffs and ongoing uncertainties are driving a shift away from U.S. assets, leading to a sell-off in dollars. In the context of a worsening trade war and global economic slowdown, the euro and Swiss franc have become preferred choices for fund flows.
The Bloomberg Dollar Spot Index dropped by 0.6% after a brief rebound in the previous session, marking its first increase in six days.
