The Dollar Stabilizes Amid Relative Calm in Currency Markets Despite Tariff Volatility

The US dollar remained relatively stable in early Monday trading, following a period of heightened volatility that had shaken global market confidence due to sudden shifts in trade policy, particularly regarding import tariffs imposed by the United States.

Although the dollar found some support, it remains near its lowest level in three years, as investors adopt a cautious stance amid ongoing uncertainty. This comes after a turbulent week during which the imposition and subsequent delay of tariffs created a state of confusion in global markets.

Market sentiment was somewhat eased after the announcement of a temporary exemption for certain imported goods—such as smartphones and computers, most of which are sourced from China—from the newly imposed tariffs. However, the exemption is expected to be short-term, leaving uncertainty around future trade developments.

In the currency markets, the dollar rose by 0.34 percent against the Swiss franc, after having fallen to its lowest level in ten years the previous week. The euro declined by 0.13 percent to reach 1.1344 dollars, following a 3.6 percent rise in the prior week, during which it hit a three-year high.

The Japanese yen weakened by 0.2 percent, trading at 143.79 per dollar, while the British pound fell by 0.33 percent to 1.3084 dollars.

The Australian dollar gained 0.15 percent, reaching 0.6303 dollars, continuing the upward trend that saw it rise by over 4 percent the previous week. Similarly, the New Zealand dollar advanced 0.33 percent to 0.5843 dollars.

The US dollar index, which measures the currency against a basket of major global currencies, remained steady at 99.73, hovering near its lowest level in three years.

Meanwhile, the Chinese yuan fell by 0.17 percent in offshore trading to 7.2941 per dollar, ahead of the start of trading in domestic markets on Monday.