Turmoil and Tariffs: The Dollar's Tangled Dance

The U.S. dollar approached historic lows against the euro and the Swiss franc, as markets braced for President Trump's looming tariff announcements. With Sunday's confirmation of new tariff rates effective on August 1, trade partners globally awaited potentially drastic changes.

President Trump indicated progress in finalizing some trade agreements, naming countries set to receive higher levies by Monday. Only the U.K., China, and Vietnam have finalized agreements so far.

Market volatility increased, notably impacting the Australian and New Zealand dollars. As the Reserve Bank of Australia anticipated a rate cut amid inflation concerns, the New Zealand dollar also saw fluctuations, reflecting the broader uncertainties in global finance.

(With inputs from agencies.)