The dollar slid Friday, extending this year’s losses to over 7%, after President Donald Trump threatened steep new tariffs of the European Union and revived investor concerns over global trade policy.

The U.S. dollar was soft on Friday, poised to make its first weekly drop in five weeks against the euro and the yen as worries over the United States' worsening fiscal health sent investors scurrying for safe havens.

The US Dollar (USD) halted a four-week winning streak, coming under renewed and significant selling pressure to hit fresh three-week lows. The downturn in the Greenback followed a brief rally earlier in the month, when it climbed to within a few pips of the key 102.00 level when measured by the US Dollar Index (DXY).

ESWAR PRASAD is Senior Professor of Trade Policy in the Dyson School of Applied Economics and Management at Cornell University, a Senior Fellow at the Brookings Institution, and the author of The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance.

The day after the 2020 presidential election won by Biden, gold closed at 1,904. Biden exited the race for a second term on July 21, 2024. As of Friday, July 19, gold was trading at $2,398. The dollar lost 25 percent against gold during Biden’s lone term.

The Japanese Yen extends gains, with USD/JPY falling to near 143.00 during European hours on Friday. Japan’s core CPI rises 3.5% YoY in April, the highest in two years and above expectations. Headline inflation stands at 3.

The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors slashed bets on a Bank of Canada interest rate cut next month after domestic data showed underlying inflation heating up.