Dollar Slides to Multi-Year Lows on Scarcity of Tariff Deals
By Reuters | 06 Jul, 2025

As the world nears the Trump tariff deadline with few actual deals the investment community is bracing for the US economy to suffer declines in production, investments.

The dollar has been slipping against other currencies as tariffs are expected to take a bigger toll on economic activity.

The U.S. dollar hovered near its lowest since 2021 against the euro and the weakest since 2015 versus the Swiss franc on Monday, with traders alert for any trade-related headlines in the countdown to President Donald Trump's tariff deadline.

Most U.S. trade partners are set to see much steeper duties at the end of Trump's 90-day moratorium on Trump's "Liberation Day" reciprocal tariffs on Wednesday. So far, only Britain, China and Vietnam have agreed any sort of trade deal with the White House.

Trump said on Friday that he would on Monday name some dozen countries he had signed letters to with their new, higher levies, and pointed to August 1 as the date those rates would go into effect for many trading partners. U.S. Treasury Secretary Scott Bessent on Sunday predicted several big announcements in coming days.

"Market volatility appears inevitable when the pause officially ends and new tariff levels are announced," James Kniveton, a senior corporate FX dealer at Convera, wrote in a client note.

At the same time, "the impact may prove more muted this time," he said. "Unlike previous announcements where tariff levels exceeded expectations, current proposals are largely anticipated. Moreover, markets appear to be pricing in continued deadline extensions."

The dollar slipped 0.1% to 0.7939 Swiss franc early on Monday in Asia, edging back towards the July 1 low of 0.7869 franc, a level not seen since January 2015. It also fell 0.1% to 144.49 yen.

The euro eased 0.1% to $1.1780, not straying far from the July 1 peak of $1.1829, a level last seen in September 2021.

The dollar index, which measures the currency against those three rivals and three more major counterparts, was flat at 96.967, hovering above Tuesday's nearly 3-1/2-year trough of 96.373.

(Reporting by Kevin Buckland; Editing by Sonali Paul)