In a surprising move on Thursday, President Donald Trump announced a sudden pause on higher tariffs for all countries except China—sending ripples through global markets and adding another layer of uncertainty for investors.
The decision prompted a sharp reaction in the currency markets. The U.S. dollar took a notable hit, plunging over one percent against the euro.
Traders and analysts were already bracing for economic data expected later in the day, with forecasts pointing to a slowdown in U.S. inflation for March. The combination of policy unpredictability and weaker inflation expectations triggered a wave of caution.
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As the greenback lost ground, investors sought refuge in traditional safe-haven currencies. The dollar slipped further against the Japanese yen and the Swiss franc, both considered reliable during times of market turbulence.
This latest turn of events underscores the delicate balance global markets are navigating. With inflation data still to come and trade tensions lingering in the background, currency volatility could remain a recurring theme in the weeks ahead.
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