President Donald Trump has announced a 90-day suspension of reciprocal tariffs on imports from numerous countries, excluding China, which will face a 125% tariff. This decision comes amid global market volatility, with the U.S. dollar experiencing significant declines and the euro reaching a three-year high against it. The tariff pause was prompted by a sell-off in U.S. government bonds, with the 10-year Treasury yield surging above 4.5%, raising concerns about the stability of the U.S. economy. The U.S. dollar's status as a global safe haven is under threat due to erratic policymaking and rising trade barriers, according to fund managers. The dollar fell to a three-year low against the euro, reflecting a loss of confidence among investors. This situation has been exacerbated by Trump's tariff policies, which have led to a tumultuous week for stocks, bonds, and the dollar, with the S&P 500 up 5.7%, Nasdaq up 7.3%, and the 10Y Yield rising 12.8%. Janet Yellen has noted that the sell-off in Treasuries signals a worrying drop in confidence in American policymaking. The euro has surged to a three-year high against the dollar, driven by the weakening of the U.S. currency amid tariff turmoil. This unexpected rise of the euro has caught investors off guard, with some predicting it could reach $1.20. The shift in currency dynamics is seen as a direct result of the uncertainty caused by Trump's trade policies. French Economy Minister Eric Lombard has stated that there is room for negotiation with the U.S., but warned against celebrating prematurely.