Dollar index extends downside near 3-year low

The dollar index continues to loiter around a three-year low on Monday, extending downside amid trade tariff concerns and its potential impact on the US economy. Investors are seen drifting away from the greenback that lost around 3% last week. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 99.32, down 0.57% on the day. On the U.S. economic front, preliminary data released by the University of Michigan showed a continued slump by U.S. consumer sentiment in the month of April. The University of Michigan said its consumer sentiment index tumbled to 50.8 in April after plunging to 57.0 in March. With the much bigger than expected decrease, the consumer sentiment index dropped to its lowest level since hitting 50.0 in June 2022. The report also said year-ahead inflation expectations surged to 6.7 percent in April from 5.0 percent in March, reaching the highest reading since 1981. A separate report released by the Labor Department showed an unexpected decrease by producer prices in the month of March. US President Donald Trump said on Monday that he will announce the tariff rate for semiconductors over the next week. When asked about tariffs on iPhones, Trump said it will be announced soon, but there has to be some flexibility.

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