{"id":20250,"date":"2025-04-08T06:49:58","date_gmt":"2025-04-08T06:49:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20250"},"modified":"2025-04-08T06:49:58","modified_gmt":"2025-04-08T06:49:58","slug":"dollar-weakens-as-safe-haven-currencies-climb","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/analysis\/dollar-weakens-as-safe-haven-currencies-climb\/","title":{"rendered":"Dollar Weakens as Safe-Haven Currencies Climb"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/image_fx_-2025-03-14T113836.526-1024x559.png\" alt=\"\" class=\"wp-image-18366\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dollar Index (USDX)<\/strong> down <strong>0.44%<\/strong> on Tuesday, erasing over <strong>1%<\/strong> since tariffs were announced.<\/li>\n\n\n\n<li>Yen holds near six-month high; Swiss franc and euro gain as safe-haven flows deepen.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The <strong>US dollar slipped against most major currencies<\/strong> on Tuesday, weighed down by mounting concerns that escalating trade tensions could tip the global economy into recession.<\/p>\n\n\n\n<p>With market volatility surging and risk appetite evaporating, traditional <strong>safe-haven currencies\u2014the Japanese yen and Swiss franc\u2014traded near six-month highs<\/strong>, while the <strong>Dollar Index (USDX)<\/strong> fell <strong>0.44%<\/strong>, extending losses to <strong>over 1%<\/strong> since President <strong>Donald Trump\u2019s sweeping tariffs<\/strong> were announced last week.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Japanese yen and Swiss franc strengthened as traders sought havens after US officials expressed their defiance over trade tariffs and indicated negotiations for any rate reductions will be prolonged <a href=\"https:\/\/t.co\/4op5EOAn1O\">https:\/\/t.co\/4op5EOAn1O<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1908999505216676274?ref_src=twsrc%5Etfw\">April 6, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><strong>USD\/JPY retreated to 147.325<\/strong>, inching closer to the <strong>Friday low of 144.82<\/strong>, while <strong>USD\/CHF settled near 0.85665<\/strong>, barely above its recent multi-month trough. Despite the dollar\u2019s usual safe-haven appeal, the currency is losing ground as traders weigh the <strong><a href=\"https:\/\/www.reuters.com\/markets\/wealth\/global-markets-tariffs-graphic-pix-2025-04-02\/\">rising likelihood of a domestic downturn<\/a><\/strong> driven by <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-07\/china-s-retaliation-signals-xi-s-growing-frustration-with-trump-tariffs\">retaliatory trade measures<\/a><\/strong> from <strong>China and the EU<\/strong>, which could pressure corporate earnings, growth, and eventually, monetary policy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>On the technical front, the <strong>Dollar Index (USDX)<\/strong> touched a session high of <strong>103.139<\/strong> before drifting lower to <strong>close at 102.774<\/strong>. The MACD indicator shows a <strong>bearish crossover<\/strong>, while the short-term moving averages (5, 10, 30) remain tightly packed, reflecting a fragile trend environment. Support lies at <strong>102.50<\/strong>, with a break below likely to invite further weakness toward <strong>101.80<\/strong>, last tested on 5 April.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/image-9-1-1024x449.jpg\" alt=\"\" class=\"wp-image-20251\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Rangebound with bullish bias\u2014eyes on 103.27 resistance, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The <strong>trend has flattened<\/strong>, and while the USDX remains above the <strong>February floor of 101.484<\/strong>, it is under pressure from growing expectations of <strong><a href=\"https:\/\/www.cnbc.com\/2025\/04\/04\/traders-betting-fed-will-cut-rates-at-least-4-times-this-year-to-bail-out-economy.html\">Federal Reserve rate cuts<\/a><\/strong>. The market is now pricing in <strong>a possible rate cut as early as May<\/strong>, which would weaken the dollar\u2019s yield advantage over peers like the euro and sterling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Market Sentiment at a Crossroads<\/h2>\n\n\n\n<p>Fed officials remain cautious. <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-07\/fed-s-goolsbee-says-firms-fear-tariff-driven-inflation-surge\">Chicago Fed President Austan Goolsbee<\/a><\/strong> urged restraint, citing the need for <strong>\u201chard data\u201d<\/strong> before adjusting policy, while <strong>Charles Schwab\u2019s Kevin Gordon<\/strong> argued that <strong>rate cuts may not offer a solution<\/strong>, especially with inflation still sticky and fiscal stimulus absent. Meanwhile, <strong>analysts expect <\/strong><strong><a href=\"https:\/\/www.reuters.com\/markets\/rates-bonds\/rbnz-cut-rates-by-25bps-economists-say-more-cuts-possible-after-us-tariffs-2025-04-07\/\">New Zealand\u2019s central bank to cut rates<\/a><\/strong> at its next policy meeting, underscoring the widening divergence among global monetary authorities.<\/p>\n\n\n\n<p>The dollar\u2019s unusual weakness, even amid risk aversion, suggests markets are repricing the greenback&#8217;s safe-haven status. As the political response to tariffs remains hardline and economic data turns, <strong>the path of least resistance for the dollar appears downward\u2014at least in the near term.<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US dollar slips as the yen, Swiss franc, and euro rally. Markets brace for slower growth and potential rate cuts. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[44],"tags":[47,49],"class_list":["post-20250","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-indices"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/20250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=20250"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/20250\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=20250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=20250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=20250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}