The dollar is falling against most currencies due to fluctuations in customs duties

The US dollar fell slightly during today's trading on Tuesday, approaching its lowest level in 3 years against the euro, and its lowest level in 6 months against the yen, which it recorded last week, under the uncertainty about US tariffs, despite the rise in Treasury bond yields, highlighting the fluctuation of investor confidence in the US dollar and US assets.

USDJPY

The dollar-yen pair fluctuated slightly near the levels of 143.00, remaining close to the 6-month low achieved last Friday.

EURUSD

The EURUSD pair also rallied near the levels of 1.1365, which is slightly below the 3-year high of 1.1470 USD that it set last week.

The market's attention was focused on the ever-changing news headlines about tariffs, as the United States eased tariffs on smartphones and other electronic devices from China over the weekend, although President Donald Trump's statements indicated that the duty-free period will most likely be for a short time.

Trump's imposition, and then his sudden postponement, of most tariffs on goods imported into the United States has created confusion, increasing uncertainty for investors and policymakers around the world.

Expectations indicate that the dollar will decline again with each upward correction, as the idea of the American exception has completely faded, and it is worth noting that most of the dollar selling in recent days was limited to the London and Tokyo trading sessions, indicating that international investors are seeking to exit the United States.

The yield of the benchmark US 10-year Treasury bond (US10Y) also fell by 1.5 basis points to 4.348% after falling by about 13 basis points in the previous session.

Yields rose by about 50 basis points last week, recording strong weekly gains, as analysts and investors questioned the status of US bonds as the safest asset in the world.

On the other hand, Christopher Waller, a member of the Federal Reserve, said on Monday that the tariff policies pursued by the Trump administration represent a big shock to the US economy, and may prompt the Federal Reserve to cut interest rates to avoid recession even if inflation remains high.