The U.S. dollar hovered near three-week lows against the euro and Swiss franc on Wednesday as renewed geopolitical tensions and fiscal concerns triggered a broad selloff across U.S. assets, including stocks, bonds, and the currency itself. Investor sentiment weakened after the White House revived threats linked to Greenland, reviving the so-called “Sell America” trade that first emerged earlier this year following tariff announcements.
The dollar index, which tracks the greenback against six major currencies, fell 0.53% overnight, its sharpest single-day decline in six weeks, before stabilizing around 98.541. The euro climbed more than 1% at one point on Tuesday, reaching its strongest level since late December at $1.1770, before easing slightly to trade near $1.1720. Meanwhile, the dollar slid nearly 1.2% against the Swiss franc, touching 0.78795, also a December low, before recovering modestly.
Market analysts cited growing concerns over prolonged uncertainty, strained international alliances, declining confidence in U.S. leadership, potential retaliatory measures, and accelerating de-dollarization trends. Although investors remain hopeful that tensions may ease, uncertainty continues to weigh on the dollar.
U.S. equities also felt the pressure, with the S&P 500 and Nasdaq Composite falling to one-month lows as investors returned from a long holiday weekend. Treasury yields surged to multi-month highs, reflecting heavy selling in government bonds.
In Asia, the Japanese yen faced its own turmoil. The currency weakened sharply after Prime Minister Sanae Takaichi called snap elections for February 8 and pledged aggressive fiscal expansion. This fueled a selloff in Japanese government bonds, pushing long-term yields to record highs. The 40-year JGB yield spiked above 4.2% before easing slightly, while the yen hit record lows against both the euro and Swiss franc.
With the Bank of Japan expected to hold rates steady at its upcoming policy meeting, markets will closely watch guidance on future tightening as inflation risks rise amid political uncertainty and a weak yen.


Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion
U.S. Stock Futures Slip as Year-End Trading Turns Cautious
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment
U.S. Stocks Slip as Gold Rebounds Ahead of Year-End, Markets Eye 2026 Outlook
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 



