Investors stack in secure currencies as tariffs by markets wrinkle

By Chibuke Oguh and Yadarisa Shabong New York (Reuters) investors on Monday bought safe ports such as the dollar, Yen and Swiss Frank as concern about a global recession that increases US President Donald Trump’s fast rates on trading partners. The world markets dropped on Monday, with Wall Street shares trading lower after Asian stocks have sunk, as investors are leading the increasing risk of a deep economic downturn to a reduction in US interest rates in May. The risk-sensitive Australian and New Zealand dollars, as well as the Swedish and Norwegian crowns, all dropped against the dollar. The dollar has reduced its losses against other safe currencies. This was 0.50% higher than the yen to 147,605, after tumbling more than 1.4% earlier in the session. The dollar also struck its lowest in six months against Swiss francs and fell 0.06% at 0.8605 franc in a meager trade. “” The only thing we know for sure is that it is volatile … but I think broadly, and set aside the nuances, because rates make the world’s growth look, the dollar block and the scandies – the dollar block – the dollar – the dollar – the dollar is the dollar – the dollar and the dollar is the dollar – the dollar is the dollar is the dollar and the dollar is the dollar and the dollar is the dollar and the dollar is the dollar and the dollar is the dollar and the dollar is the dollar and the dollar is the dollar and the dollar is the dollar and the scandies – the dollar is the dollar block and the scandies – the scandies are under the wheels. says Marc Chandler, main market strategist at Bannockburn Global Forex in New York. “On the other hand, the currencies that are typically safe for currencies – such as the Swiss franc and yen – perform better.” The euro, which earlier in the session achieved as much as 0.7% to $ 1,1050, was fell 0.39% at $ 1,091775. “The euro has certainly done very well over the past few days since we heard about the rates,” says Jane Foley, head of the FX strategy at Rabobank. “Maybe it relates to the euro zone running account position, or maybe it is only related to investors who are still moving out of US assets and still not quite sure where to move their money.” Although the dollar is typically known as a safe Haven asset, the status seems to erode as uncertainty about rates and concerns about its impact on US growth. The European Union countries will want to offer a united front against Trump’s rates in the coming days, which is likely to have a first set of targeted countermeasures up to $ 28 billion US import ranging from dental floss to diamonds. Sterling struck a one -month low at $ 1,27465 and was 1.05% lower against the Greenback. The Aussie, which is often used as a proxy for risk appetite, previously tumbled to a low-year-old session, but was the last place with 0.51% to $ 0.601. The New Zealand dollar decreased 0.86% to $ 0.5547, with more than 1% earlier in the session. Last week, Trump’s tariff announcements wiped out nearly $ 6 trillion value from the US shares. When asked about the impact, Trump said on Sunday that “medicine” is sometimes needed to fix things, adding that he did not deliberately take a market sale. Traders hope that fast US rate cuts have approached the White House more than 50 countries to start trading talks. China, which fell back with countermeasures, including extra levies of 34% on all US goods, said on Saturday “the market spoke.” Traders this year has increased more federal reserve rate cuts on the view of policy makers to facilitate more aggressively to increase growth in the world’s largest economy. Markets have swung to imply an about 55% chance of a Fed cut in May, and futures now indicate more than 100 basis points worth by December this year. Investors previously expected the Fed to hold rates next month. Fed chairman Jerome Powell warned on Friday that it was still too soon to know what the right reaction of the central bank should be. (Reporting by Rae Wee in Singapore and Yadarisa Shabong in Bengaluru; Editing by Himani Sarkar, Edwina Gibbs, Susan Fenton, Mark Heinrich and Rod Nickel)