The dollar fell after Trump threatened tariffs against Greenland

The dollar weakened on Monday after US President Donald Trump threatened to impose 10 percent tariffs on imports from eight European countries – including Germany, France, and Britain – if the US is not allowed to buy Greenland.

Investors responded by shifting to safe currencies such as the Japanese yen and Swiss franc. Although the euro and pound fell at the start of trading, they later erased their losses and the dollar came under pressure.

Experts point out that, as with last year's Liberation Day tariffs, uncertainty surrounding US policy is weakening the dollar. Markets are thus beginning to factor higher political risk directly into the US currency's exchange rate.

The dollar fell 0.24 percent against the franc and 0.31 percent against the yen. Cryptocurrencies such as bitcoin and ether have seen a significant decline, signaling increased risk aversion in global markets.

(reuters)