USD weakens across board after court rules Trump tariffs unconstitutional

The US dollar has fallen sharply against major currencies following a US Court of International Trade ruling that declared Trump-era tariffs unlawful. EUR/USD jumped 0.6% to 1.0895, while USD/JPY dropped 0.8% to 154.75 as markets reassess the sustainability of protectionist trade policies. The court's decision creates uncertainty about existing and future tariff frameworks, potentially limiting the administration's ability to implement aggressive trade measures. Currency traders are unwinding dollar-long positions built on expectations of sustained tariff support for the greenback. Risk-sensitive currencies like AUD/USD (+0.7% to 0.6485) and NZD/USD (+0.65% to 0.5920) have particularly benefited from the ruling. The dollar index has broken below key technical support at 104.50, opening the path toward 103.80. This development could mark a significant shift in dollar sentiment if trade policy uncertainties persist.