Worries that the trade war intensified and damaged the attractiveness of US assets, and the dollar weakened again

The Zhitong Finance App learned that the US dollar resumed its decline after a short period of relief as concerns about the expanding trade war weakened demand for US assets. In early trading in London on Wednesday, the US dollar fell against almost all Group of Ten (G10) currencies, and the exchange rate of the euro against the US dollar rose 0.9% at one point. Meanwhile, the Trump administration's new restrictions on Nvidia (NVDA.US) chip exports to some countries and regions have boosted risk aversion, and safe-haven currencies such as the Swiss franc and yen are sought after.

Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, said: “All this uncertainty and discussions about more tariffs fuel the idea of selling dollars to reduce risk exposure to US assets.” He said the euro and the Swiss franc are expected to be boosted even if the trade war escalates and global economic growth worsens.

The Bloomberg dollar index fell 0.6% on Wednesday, a day after the index rose for the first time in six trading days. So far, the index has fallen by about 3.5% in April, and is expected to show the biggest monthly decline since the end of 2022, as Trump's large-scale tariff measures and unpredictable policy formulation raised concerns about the US recession and the attractiveness of the US dollar. Another example of weakening confidence in America's traditional safe-haven assets is that US Treasury bonds experienced the worst sell-off in more than 20 years last week.