Global Currency Shifts: Dollar and Euro Struggles Amid Tariff Tensions

The dollar remained just below its recent high on Monday, as traders waited for clarity on the next round of tariffs from President Donald Trump. The euro saw slight gains following consecutive declines, whereas the yen dipped against the dollar due to increased U.S. Treasury yields.

The U.S. dollar index was stable at 104.03 but had hit 104.22 on Friday, a high not seen since early March. Goldman Sachs downgraded their dollar forecasts, yet predicted potential dollar strength, driven by a revised growth outlook and anticipated tariff increases.

Geopolitical factors influenced the Turkish lira and other currencies, with Istanbul Mayor Ekrem Imamoglu’s imprisonment raising political tensions. The lira reached record lows following Turkey’s central bank policy adjustments. Meanwhile, markets remain focused on the upcoming U.S. tariff announcements, shaping global currency movements.

(With inputs from agencies.)