Dollar Faces Historic Lows Amid Tariff Uncertainty

The U.S. dollar is nearing its lowest point against the euro since 2021 and matching its weakest position against the Swiss franc since 2015. Market traders remain vigilant as President Donald Trump's tariff deadline approaches, causing uncertainty and potential volatility.

Many of the United States' trade partners brace for steeper tariffs following the conclusion of Trump's 90-day suspension on 'Liberation Day' reciprocal tariffs. So far, only the UK, China, and Vietnam have agreed to trade deals with the administration, highlighting the potential for escalated trading tensions. Trump hinted that higher tariffs on some countries might be effective by August 1.

Scott Bessent, U.S. Treasury Secretary, anticipates significant announcements in coming days. Despite expected volatility post-deadline, some market analysts like James Kniveton of Convera suggest the impact may be less severe as current tariff proposals are largely anticipated and extensions are priced in by markets.

(With inputs from agencies.)