
Dollar starts week softer as tariffs weigh, yen rises
global trade war led investors to safe havens, lifting the yen and the Swiss franc.
Markets have been fixated on simmering trade tensions across the world as U.S. President Donald Trump slapped tariffs on top trading partners only to delay some of them for a month amid growing signs and fears of the U.S. economy slowing down.
That has led to investors losing faith in the U.S. economy which has been outperforming its peers. On currency futures markets, investors have slashed net long dollar positions to $15.3 billion from a nine-year high of $35.2 billion in late January.
Risk-averse investors have sought the Japanese yen and Swiss franc instead sending both currencies to multi-month highs. On Monday, the yen was 0.5% firmer at 147.27 per dollar, just shy of the five-month high it touched on Friday.
The Swiss franc hit a three-month high of $0.87665 in early trading. The euro was 0.3% higher at $1.086725 after clocking its best weekly performance since 2009 last week boosted by Germany's game-changing fiscal reforms.
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