The Dollar Spot Index has declined roughly 2.5% from its February peak as traders unwind positions built on expectations that US President Donald Trump would aggressively escalate global tariffs under his “America First” agenda. With growing indications that tariff measures will be more targeted framed around national security and trade equity rather than broad-based escalation investors are scaling back dollar bullish bets.
After posting its steepest drop in three weeks on Thursday, the greenback remained little changed on Friday as traders reassessed the potential use of tariffs as a strategic negotiation tool rather than an outright economic weapon. This shift is undermining the once-dominant dollar-long trade, raising questions over the currency’s near-term direction.
Gold Remains Firm, Oil Stabilizes Amid Trade Uncertainty
Gold fluctuated but remained near record highs, benefiting from sustained haven demand. The precious metal has seen strong inflows this year, consistently setting fresh peaks, with the potential to challenge the $3,000 per ounce mark if market volatility persists.
Meanwhile, oil prices steadied as traders digested the implications of Trump’s latest directives on potential reciprocal tariffs targeting key US trading partners. With geopolitical risks still in play and global trade policies evolving, asset price movements remain highly sensitive to policy signals, making risk management crucial for traders navigating this shifting landscape.