As concerns about the outlook for U.S. economic growth intensified, the dollar faced a broad sell-off on the last trading day of the week, with safe-haven funds rapidly flowing to assets like gold, the Swiss franc, the yen, and the euro. The latest data shows the dollar fell 1.2% against the Swiss franc, hitting 0.81405 francs, the lowest level since January 2015, continuing the nearly 4% decline of the previous trading day; the dollar fell 1.1% against the yen, to 142.88, the lowest since September 30, 2023; meanwhile, the dollar fell to 1.3910 against the Canadian dollar, its lowest in five months.
The euro surged 1.7% to 1.13855, a new high since February 2022. The U.S. dollar index (DXY) fell 1.2%, dropping below the critical 100 mark for the first time since July 2023. Chris Weston, Head of Research at Pepperstone, commented, "The market is experiencing a clear 'sell dollar' sentiment, with traditional safe-haven assets receiving broad inflows."
Gold performed particularly strongly, with spot gold rising 1.4% on Friday, reaching $3,219.23 per ounce, setting a historical record. Analysts believe that as Sino-U.S. trade tensions continue to escalate and uncertainties around U.S. policies persist, the appeal of gold as an inflation and risk hedge has significantly increased.
President Trump's policy turbulence has exacerbated market unease. Previously, he announced a 90-day tariff suspension on multiple trade partners, while simultaneously raising import taxes on Asian countries to 145%, further deepening market concerns over a global economic slowdown. Although the White House stated the tariff pause was a predetermined negotiation strategy, Trump later admitted that market volatility spurred this policy adjustment.
Brent Donnelly, President of Spectra Markets, stated, "Although Trump has made concessions on yields, this does not mean that the 10-year U.S. treasury will not again challenge 4.50%, and the dollar may continue to face selling pressure."
Meanwhile, U.S. 10-year treasury yields rose nearly 10 basis points in early trading, to 4.488%, poised to mark the largest weekly increase since 2001. Market speculation over the Fed's future rate cut path has also become volatile, with global leaders and corporate executives stating that policy unpredictability is presenting unprecedented challenges for corporate planning and capital expenditures.
