MUFG Bank analysts note that expectations are growing that the Federal Reserve may focus more on slowing economic growth rather than elevated inflation in response to U.S. tariffs, putting pressure on the dollar.

Investors are increasingly worried about weaker U.S. growth, contributing to a sharp decline in U.S. bond yields as markets anticipate more aggressive Fed rate cuts this year.

Additionally, a recent drop in consumer confidence suggests that households are concerned about the inflationary effects of tariffs and the economic risks posed by rising policy uncertainty in the U.S.

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I posted late in February to watch just this sort of development:

It appears to be spreading outside of Asia and into the US now.