Following U.S. President Donald Trump’s announcement of reciprocal tariffs on April 3, 2025, major currency pairs experienced significant shifts, reflecting market reactions to the policy change. The U.S. Dollar Index (DXY) dropped below 102, signaling a broad weakening of the USD against its peers. The EUR/USD pair surged above 1.11, breaking out of a recent consolidation pattern around 1.08, driven by a sharp decline in the dollar and heightened risk sentiment. The USD/JPY pair also saw notable movement, with the yen gaining strength against the dollar, though specific levels were not widely detailed in early reports. Meanwhile, the USD/CNY pair faced pressure as speculation grew that China might depreciate the yuan in response to the tariffs, potentially offsetting their impact. The Canadian Dollar (CAD) and Mexican Peso (MXN), currencies of key U.S. trading partners, weakened against the USD earlier in the year following tariff-related comments, though immediate post-announcement levels were less clear. These movements underscore the forex market’s sensitivity to trade policy shifts, with the dollar broadly retreating as traders reassessed global economic implications.