Analysis: Tariff turmoil drags the dollar to a 12-week low, and the market needs time to digest the developments

ChainCatcher news, according to Jinshi reports, Monex Europe analysts stated in a report that the dollar extended its decline on Tuesday, hitting a 12-week low, as concerns over the weakening growth outlook for the U.S. economy put pressure on the dollar.

They noted that the concerns about economic growth stem from the tariffs imposed by the Trump administration and broader policies, as well as recently weak U.S. economic data. However, these worries about U.S. economic growth may be "somewhat overstated."

Meanwhile, the market has also underestimated the impact of tariffs in other regions. They indicated that U.S. import tariffs should still have a net positive effect on the dollar. Currently, traders may need time to digest the full impact of the latest developments, so for those betting on a stronger dollar, this could be a "difficult process."