The U.S. dollar weakened Monday, with uncertainty surrounding the Trump administration’s trade policies shaking investor confidence in the world’s reserve currency.

The U.K. economy expanded by 0.5% in February compared to the previous month, official data showed on Friday, rebounding from a modest decline in January. Economists had forecast a smaller increase of 0.1%.

Beijing on Friday increased its tariffs on U.S. imports to 125%, hitting back against U.S. President Donald Trump’s decision to hike duties on Chinese goods to 145%, raising the stakes in a trade war that threatens to up-end global supply chains.

China’s economy likely slowed down in the first quarter while 2025 growth is expected to lag last year’s pace, a Reuters poll showed, ramping up pressure for more stimulus as surging U.S. tariffs threaten to deal a damaging blow to the Asian giant.

Asian stocks slid on Friday with Japanese markets leading losses on heightened concerns over the fallout of a worsening U.S.-China trade war, which largely offset relief over the U.S. postponing some trade tariffs. 

Oil prices rose on Friday after settling more than $2 a barrel lower in the previous session, but were set to drop for a second straight week on concerns over a prolonged trade war between the United States and China.