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As a new wave of tariffs upends global markets, the dollar has wiped out all gains since Trump's election win last November.Paresh Upadhyaya, director of fixed-income and currency strategy at Amundi, said, ‘The dollar bear market is here and it's roaring.’ He added that the dollar could fall 10 per cent this year as the US ‘teeters on the brink of recession’. That contrasts with earlier this year, when Trump's policy plans, such as tax cuts and tariffs, were seen as a reason to bet on a dollar rally. In February, U.S. Treasury Secretary Ben Bessent confirmed the administration's strong dollar stance by saying Trump's policies were ‘perfectly consistent’ with a strong dollar, said Ed Al-Hussainy, a strategist at Columbia Threadneedle Investment: ‘We may be in the early stages of a structural sell-off in the dollar.’

The three major U.S. stock indexes opened low and closed low, the Dow initially closed down about 1,700 points, the S&P 500 fell 4.8 per cent, the Nasdaq fell nearly 6 per cent. Technology stocks fell heavily, Apple (AAPL.O) fell 9%, market value evaporated about 300 billion U.S. dollars, Amazon (AMZN.O), Nvidia (NVDA.O) fell 8.9% and 7.8% respectively. Intel (INTC.O) bucked the market with a 2 per cent gain. The Nasdaq China Golden Dragon Index fell 1.9 per cent.