Dollar Dominates Globally Amidst Trade Turmoil

The U.S. dollar is achieving one of its strongest weekly performances in nearly three years, largely due to President Trump's new tariff impositions on various trade partners. This has contributed to sharp declines in the currencies of nations like Switzerland, which now contends with a 39% tariff and sees its franc hitting a six-week low.

Apart from tariffs, other economic factors are driving the dollar up. The yen braces for its largest weekly loss of the year following Japan's decision to stall interest rate hikes. Meanwhile, the anticipated U.S. employment report is predicted to show a modest jobs increase, maintaining investor confidence.

Despite trade tensions, markets perceive Trump's tariffs as non-disruptive to the overall U.S. economy and inflation levels. The Federal Reserve has signaled no urgency in adjusting interest rates, fostering a view that the economic status quo will persist unless significantly negative data emerges in the short term.

(With inputs from agencies.)