SINGAPORE: The dollar retreated for a second day in Asian trading on Tuesday after threats from the White House towards the European Union over the future of Greenland triggered a broad selloff across U.S. stocks and government bonds.
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell as much as 0.3% to 98.841 – reaching its lowest level since January 12 – as investors worried about exposure to U.S. markets.
On Monday, U.S. President Donald Trump’s renewed tariff threats against European allies triggered a repeat of the so-called “Sell America” trade that emerged after last year’s Liberation Day tariff announcement in April, with stocks, Treasury bonds and the dollar all declining. U.S. markets will return on Tuesday following a public holiday for Martin Luther King Jr. Day.
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