In Tokyo, the U.S. dollar faced challenges against the safe-haven yen nearing a six-month high as traders assessed the impact of President Donald Trump's aggressive tariff measures. Following a bounce from recent lows against the euro and pound, the dollar stabilized, focusing on the U.S. payrolls report for economic health indicators. Trump's unexpected tariffs triggered market shifts, causing a sell-off in stocks and driving investors to safer assets like bonds and gold amid concerns of a potential global recession and inflation. Concerns over Trump's trade policies had already weakened the dollar earlier this year. The dollar index dropped sharply on Thursday, marking its most significant decline since November 2022. The dollar-to-yen rate dipped, while the euro and pound showed slight gains but were volatile. Market sentiment was cautious, with uncertainty prevailing. Deutsche Bank highlighted the possibility of a crisis of confidence in the U.S. dollar due to shifting capital flows triggering disorderly currency movements. Trump announced applying varying tariffs on imports, intensifying trade tensions with major trading partners.