Confidence in the US dollar is wavering.

After a brief period of initial excitement, the US dollar reversed course and fell again in Monday morning trading (April 14) as US President Donald Trump's tariff-related statements last week shook investor confidence in the world's leading reserve currency.

The US dollar continued to weaken this morning.

USD continues to weaken.

Accordingly, the US dollar reversed its initial gains as Asian trading began, falling back against the Swiss franc and heading towards a 10-year low on Friday. The USD is currently trading 0.05% lower against the Swiss franc, at 0.8158.

Conversely, the British pound has narrowed its losses against the USD since the start of the session, now down only 0.06% to $1.3120. Meanwhile, the New Zealand dollar rose to a four-month high of $0.5860; the Australian dollar also gained 0.11% to $0.6301, extending its more than 4% gain from last week.

Against the Japanese yen, the dollar fell 0.62% to 142.62 JPY/USD.

Japan is preparing for trade talks with the U.S. that are likely to address the sensitive topic of monetary policy. Japanese Economy Minister Ryosei Akazawa said on Monday that foreign exchange issues would be resolved between Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent.

"Markets have rushed to price a stronger yen after confirmation that Bessent and Kato will discuss foreign exchange," said Christopher Wong, a currency strategist at OCBC.

The euro rose 0.3% to $1.1396, hovering near its three-year high set last Friday as investors flocked to the common currency following a crisis of confidence in the US dollar.

Growing investor anxiety about owning US assets has led some to sell off those positions and move money into other markets, including Europe, boosting the euro's value. “I think we could see the euro trading at around $1.20 by… late July, early August,” said Sycamore of IG.

The onshore yuan fell 0.1% to 7.3022 CNY/USD, while the offshore yuan dropped more than 0.3% to 7.3059 CNY/USD.

The offshore yuan hit a record low last week, while in the domestic market it fell to its lowest level since 2007 as the trade war between the US and China escalated.

Its position is being shaken.

US President Donald Trump said on Sunday (April 13) that he would announce tariffs on imported semiconductors next week, adding that there would be flexibility for some companies in the sector.

Earlier on Friday, the White House exempted smartphones, computers, and some other electronic devices imported largely from China from reciprocal tariffs. However, Trump later indicated that this move would not last. Speaking on the social media platform Truth Social, Trump said that these products are still subject to the current 20% Fentanyl tariff and they are just moving to a different tariff 'category'.

Trump's rapidly changing tariff policies continue to confuse investors, and they are bracing for another volatile week.

“At this point…it’s been handled haphazardly…and those measures have created a lot of uncertainty,” said IG market analyst Tony Sycamore. “Those dark clouds, they’re still hovering, they haven’t gone anywhere yet.”

The USD Index – a measure of the dollar's strength against six other major currencies – has fallen 0.45% to 99.45, not far from the three-year low set last Friday.

“The market is reassessing the structural appeal of the dollar as the world ’s global reserve currency and is undergoing rapid de-dollarization,” George Saravelos, head of global foreign exchange research at Deutsche Bank, wrote in a note to clients. “Nowhere is this more evident than in the ongoing and combined collapse of the U.S. currency and bond markets.”

A sharp sell-off in the US Treasury market last week, partly due to hedge funds quickly canceling so-called underlying trades, dragged the USD down.

There were few signs that bonds would recover on Monday, with 10-year Treasury yields at 4.47%, starting the week fairly stable after the biggest weekly increase in borrowing costs in decades.

"We believe that the de-dollarization process still has a lot of work to do, but we remain very open to how it will unfold and what the final new equilibrium in the global financial structure will look like," said Saravelos of Deutsche Bank.

Source: https://thoibaonganhang.vn/niem-tin-vao-dong-usd-dang-lung-lay-162723.html