The U.S. dollar hovered near a three-month low on Wednesday as escalating trade tensions weighed on investor sentiment. U.S. tariffs on Mexico, Canada, and China took effect, prompting retaliatory measures. The euro surged to a near four-month peak at $1.0637 after Germany announced a 500-billion-euro infrastructure fund. Sterling also held firm near a three-month high at $1.2786.
China’s yuan remained steady in offshore trading following a 0.7% rally, as Beijing reaffirmed its 5% economic growth target at the National People’s Congress. Meanwhile, crude oil hit a six-month low, with U.S. West Texas Intermediate (WTI) falling 0.6% to $67.83. Bitcoin stabilized at around $87,000 after a volatile week.
Asian markets saw mixed movements. Australia’s ASX 200 dropped 0.9%, while Japan’s Nikkei slipped 0.2% after early gains. Hong Kong’s Hang Seng futures pointed to a 0.6% rise. In the U.S., the S&P 500 fell 1.2% overnight, but futures rebounded 0.6%. MSCI’s world equity index inched up 0.1% but was still down 1.9% for the week.
“The uncertainty is keeping investors cautious,” said Kyle Rodda, senior financial markets analyst at Capital.com. “American businesses and consumers are likely feeling the same.”
The U.S. dollar index was steady at 105.60, recovering from a 1.9% two-day slump that pushed it to 105.49, its lowest since December 6. China’s offshore yuan slipped 0.1% to 7.2604 per dollar.
Germany’s proposed infrastructure fund and eased borrowing rules signal economic shifts, while global markets remain on edge amid ongoing trade conflicts.


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