The US Dollar Index (DXY) has dipped to $98.30, its lowest level since March 2022, driven by increased market anxiety over tariff tensions. These tensions are affecting traders’ sentiment and could have substantial implications for the GBPUSD and EURUSD pairs as well.

Market experts highlight that rising tariffs could lead to further volatility. As the uncertainty unfolds, traders are urging caution. The decline of the dollar index is likely to influence trading patterns, pushing investors to explore alternative currencies like the euro and the British pound. The economic environment will continue to be closely monitored as the tariff situation evolves and its effects ripple through the market.