The U.S. dollar dropped to its lowest level since April 2022, driven by rising tensions in the Middle East and fragile trade relations between Washington and Beijing. As investors flocked to safe-haven assets, the global stock rally decelerated, with the MSCI All-Country World Index stagnating just below its record high.
Oil prices briefly surged by 4% before retreating, influenced by the U.S.’s relocation of personnel from the Middle East due to increased security risks. The ongoing volatility in economic policies prompted concerns, as President Trump’s tariffs and fluctuating trade relations roiled markets, causing a decline in the value of the dollar against major currencies.
European markets also felt the pressure, with STOXX 600 declining and the euro gaining ground. U.S. treasury yields decreased, pointing towards market anticipation of potential Federal Reserve actions. With geopolitical shifts influencing economic indicators, stakeholders nationwide brace for further implications on treasury yields, oil prices, and global trade dynamics.
(With inputs from agencies.)
