US dollar fell against yen and Swiss franc

The dollar lost ground against the safe-haven Japanese yen and Swiss franc today, as global stock markets escalated fears of a 104% US tariff on China, pushing the Chinese yuan to record lows.

US President Donald Trump showed no sign of backing down from the new 50% tariff increase on China, which takes effect within hours, accusing Beijing of manipulating the yuan to offset the impact of the tariffs.

“If that happens, we may have to bid farewell to any remaining hopes that the US economy could avoid a deep recession,” said Chris Weston, head of research at brokerage Pepperstone. “The White House message seems to be that the blows will continue until its will is imposed,” he added, according to Reuters.

The dollar hit an all-time high against the yuan in the offshore market of 7.4288, surpassing the previous record of 7.3765.