USD faces pressure as Trump-Putin tensions escalate over Ukraine

The US dollar showed signs of weakness amid heightened geopolitical tensions following Trump's comments about Putin 'playing with fire' regarding Ukraine. The escalating rhetoric between the former US president and Russian leadership has increased market uncertainty, traditionally benefiting safe-haven currencies like the Japanese yen and Swiss franc at the dollar's expense. Russia's Medvedev responded sharply to Trump's statement, while Putin continues military operations in Ukraine, creating a complex geopolitical landscape. Currency markets are pricing in increased risk premiums, with traders monitoring potential sanctions implications and energy market disruptions. The dollar index (DXY) faces resistance at 104.50, with support emerging near 103.80. Continued escalation could drive further USD weakness against traditional safe havens, while any de-escalation might support dollar recovery. Traders should watch for official statements from both sides that could trigger rapid currency movements.