Tariff wave upends markets, dollar gives up all gains since Trump's election victory

The dollar has erased all gains it has made since Mr. Trump won the election in November as a new wave of tariffs upends global markets. "The bear market in the dollar has arrived and it's roaring," said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi, adding that the dollar could fall 10 per cent this year as the US "teeters on the brink of recession". This is in stark contrast to earlier in the year when Mr. Trump's policy plans such as tax cuts and tariffs were seen as a reason to bet on a dollar rally. In February, US Treasury Secretary Vincent Bescent said Mr. Trump's policies were "perfectly consistent" with a strong dollar, thus confirming the administration's strong dollar stance. "We may be in the early stages of a structural sell-off in the dollar," said Ed Al-Hussainy, strategist at Columbia Threadneedle Investment.