The USD/NOK currency pair settled below recent high of 11.0564, its strongest level since March 5th, 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.

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.

Meanwhile, the latest data out of Norway showed that annual consumer price inflation had eased to 2.6% in March from a ten-month high of 3.6% in February.

Norway’s annual inflation adjusted for tax changes and excluding energy products (CPI-ATE) remained steady at 3.4% in March – or the highest rate since June 2024.

The USD/NOK currency pair settled 1.43% lower at 10.6421 on Friday.

The exotic Forex pair lost 0.89% for the week.