The dollar index fell toward 99 on Monday, retreating from multi-week highs and weakening mainly against the safe-haven yen and Swiss franc after President Donald Trump threatened eight European countries with new tariffs to gain control of Greenland. The targets—Germany, the UK, France, Denmark, Norway, Sweden, the Netherlands, and Finland—face a potential 10% tariff starting Feb. 1, rising to 25% in June unless a deal is reached. European leaders discussed possible retaliatory measures, including reviving last year’s plan to impose tariffs on US goods, while French President Emmanuel Macron reportedly urged fellow leaders to activate the EU’s anti-coercion instrument. The dollar initially gained against the euro and sterling before reversing sharply as investors weighed the potential impact of Trump’s move on the US economy.
