Dollar Drops Amid Rising Geopolitical Tensions and Trade Concerns
The dollar hit near its 2025 low as tensions in the Middle East and uncertainties surrounding a U.S.-China trade truce pushed investors towards safe-haven assets. While stocks eased slightly from record highs, oil prices briefly spiked, and economists expect U.S. inflation pressures to rise with ongoing tariff impacts.
On Thursday, the dollar approached its lowest point for 2025, influenced by rising geopolitical tensions in the Middle East and uncertainties about the trade truce between the U.S. and China. These developments prompted investors to seek refuge in safe-haven assets.
Global stocks took a pause from their recent rally, with the MSCI All-Country World index dipping just below a record high. The dollar has depreciated by 10% against currency counterparts this year, marking a significant low since late April.
In response to increased security concerns, the U.S. moved personnel out of the Middle East, temporarily elevating oil prices by 4%. Experts remain cautious about potential escalations and their impact on markets. Meanwhile, Trump's unpredictable tariff policies continue to stir market volatility, affecting global economic growth.
(With inputs from agencies.)
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