The U.S. dollar fell to near three-week lows against the euro and Swiss franc as renewed tariff threats over Greenland sparked a broad “Sell America” trade, pushing investors to exit U.S. assets. Treasury bonds, stocks, and the greenback all faced selling pressure amid global market volatility.
The dollar index, which tracks its performance against six major currencies, dropped 0.53 percent overnight, marking its worst single-day decline in six weeks. Against the euro, the greenback fell more than one percent to $1.1720, while sliding nearly 1.2 percent to 0.78965 Swiss franc.
Read more : Trump says he won’t use force to take Greenland
Market analysts attributed the dollar slump to fears of prolonged uncertainty, strained alliances, and loss of confidence in U.S. leadership. Investors also considered potential retaliation by European allies and accelerated trends of de-dollarization affecting global currency dynamics.
Meanwhile, Japan’s yen weakened sharply as bond yields surged to record highs. Prime Minister Sanae Takaichi announced snap elections for February and pledged expansive fiscal measures, triggering investor concerns over rising debt and monetary tightening pressures.
The 40-year Japanese government bond yield spiked to a record 4.215 percent before easing slightly, while the yen reached historic lows of 200.19 per Swiss franc and 185.50 per euro. Market focus now turns to the Bank of Japan’s upcoming monetary policy decision.
Analysts expect the BoJ to maintain interest rates while signaling further tightening to address inflation risks caused by the weak yen and political uncertainty. Global investors remain cautious, balancing the U.S. dollar’s decline against yen volatility in international markets.