The dollar index is seen battered at its lowest level in nearly 9 months on Friday morning in Asia amid escalating trade war concerns between US and China. US President Donald Trump intensified the ongoing trade battle with China by sharply raising tariffs on Chinese goods to 145%, the White House confirmed. In response, China hit back with 84% tariffs and began strengthening ties with Europe and Asia to ease the pressure. Meanwhile, according to media reports, China is initiating talks with the European Union, ASEAN, and other key partners. President Xi Jinping will set off on a tour of three Southeast Asian countries next week as Beijing urgently seeks to strengthen ties with its neighbours amid an intensifying tariff war with Washington.
The US dollar index that measures the greenback against a basket of currencies is quoting at 99.84, down 0.77% on the day and any further slide could take the index to a three-year low. The sharp decline in dollar index has propped up the European unit to its highest level since February 2022. Meanwhile, data from US showed consumer prices unexpectedly fell in March, but inflation risks are tilted to the upside after US President Donald Trump increased China tariffs. The US CPI inflation eased to 2.4% on year in March from 2.8% in February. Core CPI, which excludes volatile food and energy prices, increased 2.8% on year in March, compared to a rise of 3.1% seen in February.
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