The greenback dipped further on Friday, hitting the lowest level in two years, amod growing concerns about the strength of the American economy, confidence declined further as the trade war between the world’s two largest economies intensified, with China once again increasing tariffs on U.S. products.

The dollar index that gauges the greenback versus its major pairs slumped by 1.2% to 99.430, dropping below the 100 level, a level not seen since July 2023.

U.S. President Donald Trump’s decision to temporarily halt broad tariffs for 90 days provided a short-lived boost to the dollar and global stock markets, but the relief quickly faded since the pause did not extend to China.

Instead, he increased tariffs on Chinese imports to an effective rate of 145%, intensifying the already growing tensions between the two largest economies in the world.

On Friday, China hit back once more, announcing new tariff of 125% on U.S. imports—an increase from the 84% rate it had announced just two days earlier on Wednesday.

EUR/USD added 1.6% to 1.1371, with euro edging up hitting a level not seen since Feb 2022.

GBP/USD ticked up by 0.7% to 1.3058, the pound was supported by figures that showed the British economy expanded at faster rate than predicted in Feb.

USD/JPY plunged 1.3% to 142.65, the yen railed to its highest level in over six months on high appealing demand of safe havens.