Tokyo: The dollar lost 0.7% to 145.23 yen, heading back toward the recent six-month trough of 144.55 on Wednesday, amid growing concerns in global markets about the possibility of the imminent imposition by the US of 104% tariffs on China spooked world equity markets and sent the Chinese yuan to record lows.
According to Qatar News Agency, the dollar has already reached an all-time top on the yuan offshore at 7.4288, breaching the previous high at 7.3765. The dollar’s decline against the yen marks a significant move, as it lost 0.7% to 145.23 yen, nearing the six-month low of 144.55 once again.
The dollar also touched a fresh six-month low on the Swiss franc at 0.8430, threatening major support at 0.8374. This development indicates potential volatility in currency markets as traders weigh the impact of possible US tariffs on China.
Additionally, the euro edged higher, aided by reports that Germany’s conservatives had reached a deal with the center-left Social Democrats to form a government. This political development eased concerns in the EU’s largest economy, with the single currency adding 0.4% to $1.0996, approaching last week’s peak at $1.1147.