The greenback dropped on Thursday, euro strengthened after President Donald Trump confirmed his aggressive tariff plans against U.S. trading partners, fuelling recession concerns.

The dollar index that gauges the greenback versus its major pairs, plunged by 1.5% to 101.91, dropping to its lowest level since mid-October.

On Wednesday, Trump revealed plans to implement a 10% base tariff on all imports to the U.S., along with higher duties on several of its largest trading partners.

China suffered the most, with U.S. tariffs on the country 54%. The European Union will face a 20% tariff.

Analysts at Capital Economics noted that the tariffs are expected to significantly increase U.S. tax revenue, but the effect on the U.S. economy will depend on how the additional revenue is utilized.

EUR/USD edged up 1.4% to 1.1012, backed by the German government's plans to ramp up spending on infrastructure and defense, helping strengthen the eurozone's largest economy amid U.S. tariffs.

GBP/USD edged up 1.2% to 1.3164, rising to its highest point since October, fueled by the U.K. facing a relatively low tariff from the Trump administration.

USD/JPY dipped 1.5% to 147.01, hitting the lowest level in three weeks, the Japanese yen strengthened significantly as safe-haven demand surged, with traders concerned about the impact of Trump's tariffs.