The USD/SGD currency pair settled above Friday’s low of 1.3159, its weakest level since November 6th 2024, as escalating trade tensions and rising concerns over a wider economic fallout for the US have shaken confidence in US assets, weighing on the greenback.

The US Dollar losses across the board came after the latest developments on the tariff front. China’s finance ministry said on Friday that it would raise tariffs on US imports to 125% from April 12th, from the previously announced 84%.

The decision was a direct response to the Trump administration’s cumulative tariff rate of 145% on Chinese imports.

The fluctuating stance on tariffs emanating from Washington has seemingly eroded confidence in the US Dollar as a reliable store of value in times of stress and led to fund flows into other markets.

“A broadly weaker dollar amid a trade slowdown makes the monetary policy picture more clear for EM central banks,” Alex Wolf, head of Asia Investment Strategy at J.P. Morgan Private Bank, was quoted as saying by Reuters.

“A weaker USD driven by financial outflows as global investors soured on the U.S. exceptionalism has boosted EM currencies (with a few exceptions), providing central banks more leeway in setting policy.”

The yield on benchmark US 10-Year Treasuries settled above 4.49%, having reached 4.592% on Friday, or the highest since February 13th. The 10-year bond yield went up 49.7 basis points this week to mark the sharpest weekly increase since 2001.

The latest macro data only added to the bleak outlook. The University of Michigan’s consumer sentiment index plummeted to its lowest level since 2022 in April, while 1-year inflation expectations rose to levels last seen in 1981.

The USD/SGD currency pair settled 0.88% lower at 1.3186 on Friday.

The exotic Forex pair lost 2.00% for the week.