From Morningstar: 2025-04-11 06:54:00

The US dollar continues to weaken against major currencies due to uncertainty over the US economic outlook in the trade war. China responded to a 145% US tariff with a 125% tariff on US goods. The dollar hit a 10-year low against the Swiss franc and a three-year low against the euro, making one euro worth $1.14.

The weakening dollar is attributed to European investors selling USD assets and repatriating capital. Concerns about a looming recession are driving the dollar down, with further selloffs expected. Rising tariffs threaten US economic growth, and de-dollarization could erode the USD’s global reserve currency status.

The euro is benefiting from dollar outflows, leading to a massive rally against the USD. ING strategists believe EUR-USD is overvalued by around 4% but could reach 1.15 in the near term. UBP predicts a move towards 1.20 in 2026. Market sentiment is driving investors away from the dollar towards traditional safe-havens.

A highly unusual trend emerged with a rise in US Treasury yields to 4.46% and a fall in the dollar. This anomaly is attributed to waning confidence in dollar assets, leading investors to favor German government bonds as safe assets. The yield on Germany’s 10-year bund has dropped to 2.55%, reflecting a shift in market sentiment towards safe-haven assets.



Read more at Morningstar: Dollar Hits 3-Year Low Against the Euro in Tariff…