The U.S. dollar plunged on Friday as growing concerns over the U.S. economy led investors to seek safer investments such as the Swiss franc, euro, yen, and gold. Gold reached an all-time high of $3,219.23 per ounce, while the Swiss franc climbed to a decade-high against the dollar.
The dollar’s decline came after a turbulent week in the markets, sparked by U.S. President Donald Trump’s recent trade policies. Despite a temporary rally on Wednesday when Trump paused tariff hikes on several trading partners, the U.S. leader escalated tensions with China by raising tariffs on Chinese imports to 145%. This decision heightened fears that the trade war between the two largest economies could have severe global consequences.
The dollar weakened across the board, dropping 1.2% against the Swiss franc, 1.1% against the yen, and 0.5% against the Canadian dollar. The U.S. Dollar Index also saw a 1.2% decline, dipping below the 100 mark for the first time since July 2023. Analysts pointed to a growing sentiment in the market to “sell USD,” with predictions of further volatility driven by ongoing trade conflicts.
