The US dollar is heading toward its second straight weekly loss, as rising geopolitical tensions and new tariff threats weigh on investor confidence in US assets.
The pressure increased after the White House announced that President Trump signed an executive order imposing tariffs on countries that supply oil to Cuba. The move added to existing market worries linked to tensions involving Iran, Venezuela, Greenland, and Europe, further unsettling investors.
Even with the negative mood, the dollar index — which tracks the US currency against a basket of major currencies — edged up 0.2% to 96.35. That small rebound helped trim the dollar’s weekly decline to about 1.1%.
Other major currencies moved lower against the dollar. The euro slipped to $1.194, the Japanese yen weakened to 153.39 per dollar, and the British pound fell to $1.3791, according to Reuters.
Mantas Vanagas, chief economist at Westpac Group, said the dollar remains under pressure as geopolitical risks grow. He noted that ongoing threats of military action in the Middle East are keeping markets cautious and adding to the downward trend in the dollar index.
At home, the dollar found some support from signs that US lawmakers may reach a deal in the Senate to avoid a partial government shutdown. Comments from Treasury Secretary Scott Bessent reaffirming the US commitment to a strong dollar policy also helped limit losses.
In Japan, fresh data showed inflation cooling in Tokyo. Core consumer prices rose 2% year on year in January, matching the Bank of Japan’s target and easing pressure on the yen.
Elsewhere in currency markets, the Australian dollar fell to $0.7033, while the New Zealand dollar slipped to $0.6066.
In the crypto market, prices were slightly lower. Bitcoin dipped 0.1% to $84,309, and Ethereum fell 0.3% to $2,808, as broader market uncertainty continued to influence risk assets.
