Dollar at 4-month low amid concerns over global growth

The dollar fell on Friday to near a four-month low as uncertainty and concerns over the growth prospects of the world’s largest economy increased due to the changing tariff policy, leaving investors waiting for jobs data due later in the day.

Another exemption from tariffs on imports from Mexico and Canada announced by US President Donald Trump on Thursday did little to reassure nervous markets, keeping the safe-haven yen close to its highest level against the dollar since early October. The Swiss franc also hit a three-month high of 0.8814, according to Reuters.

The US currency fell against the Canadian dollar and the Mexican peso after the announcement of the exemption, which will expire on April 2, when Trump said he would impose retaliatory tariffs on all US trading partners.

After a mixed batch of US economic data this week, the focus on Friday will be on US non-farm payrolls as investors assess whether economic growth is slowing.

“The signs that the US is losing ground continue to grow,” said Kieran Williams, head of Asian currencies at In Touch Capital Markets.

The dollar has “lost ground” amid uncertainty, and the perceived impact of tariffs on inflation is no longer enough to support it, he said.

“Ahead of the non-farm payrolls survey, the evidence is leaning towards a weaker outcome. Markets could become more concerned if that happens,” he added.