The euro touched a four-month high against the U.S. dollar on Thursday after the European Central Bank cut interest rates again as expected, while stock indexes fell sharply as investors weighed the impact of U.

“The signs that US exceptionalism is on the wane continue to increase” and the dollar has “fallen out of favour” amid the uncertainty, with the perceived inflationary impact of tariffs no longer enough to support it, said Kieran Williams, head of Asia FX at InTouch Capital Markets.