SINGAPORE- The dollar was softer on Monday and trading near its lowest level in four months against major currencies as concerns over a global trade war troubled investors, lifting safe havens the yen and the Swiss franc.
Markets have been fixated on trade tensions as US President Donald Trump slapped tariffs on top trading partners only to delay some of them for a month amid growing signs and fears of a US economic slowdown.
That has led to investors losing faith in the US economy which has been outperforming its peers. On currency futures markets, investors have slashed net long dollar positions to $15.3 billion from a nine-year high of $35.2 billion in January.
Risk-averse investors have sought the Japanese yen and Swiss franc instead sending both currencies to multi-month highs. On Monday, the yen was 0.25 percent firmer at 147.68 per dollar, just below the five-month high of 146.94 it touched on Friday.
The Swiss franc hit a three-month high of $0.87665 on Monday. The euro was steady at $1.0842 after clocking its best weekly performance since 2009 last week boosted by Germany’s game-changing fiscal reforms.
The dollar index which measures the US currency against six others, was last at 103.83 on Monday, stuck near a four-month low touched last week.
The dollar fell more than 3 percent last week against major rivals, clocking its weakest weekly performance since November 2022 as investors fret about tariffs and its impact on the economy.
Adding to investor jitters, Trump in a Fox News interview on Sunday declined to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China.
