SINGAPORE – The safe havens yen and Swiss franc held near six-month highs on Tuesday while the US dollar nursed broad losses as financial markets grappled with mounting recession worries in the wake of President Donald Trump’s sweeping tariffs.
The currency markets were fragile but eerily calm in Asian trade after a volatile 24-hour period where the dollar reversed heavy losses against the safe haven currencies as traders took stock of the risk of a rapidly escalating trade war.
Global shares have plummeted since Trump announced tariffs last week. China and the European Union swiftly hit back by proposing higher tariffs of their own, which Trump in turn threatened to fight with even higher duties.
In currencies, investors have flocked to the Japanese yen and Swiss franc in the past week, seeking shelter from the market turmoil in traditional safe havens.
The yen was last slightly stronger at 147.325 per dollar, near the six-month high of 144.82 touched on Friday. The Swiss franc last fetched 0.85665 per US dollar, also near a six-month high touched in the previous session.
While the dollar is typically known as a safe-haven asset, that status seems to be eroding as uncertainty over tariffs and concern over their impact on US growth intensify.
The euro rose 0.58 percent to $1.0967, not far from the six-month high it hit last week, while sterling GBP=D3 was 0.44 percent higher at $1.27795, inching away from the one-month low it touched in the previous session.
