The US Dollar experienced a decline against most major currencies amid market concerns regarding US tariffs. Equity markets weakened as China retaliated against the US, prompting warnings from US Treasury Secretary Scott Bessent against coordinated action from China and other nations. The US Dollar Index (DXY) initially retreated but demonstrated a recovery during the European trading session, stabilizing around the 102.00 level. China’s Finance Ministry implemented retaliatory tariffs on all US goods, effective April 10th. Secretary Bessent responded, asserting that China would be the sole loser in the tariff dispute and urged negotiation. He cautioned against currency devaluation as a means to circumvent tariffs and warned Europe against aligning with China. President Trump addressed the nation via social media, urging calm and assuring a positive outcome. These statements, coupled with Secretary Bessent’s remarks, appear aimed at mitigating growing market anxiety across various sectors in the US.
