*

Dollar hits lowest against Swiss franc since January 2015

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Data shows US inflation cooling in March

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Trump paused reciprocal duties on most countries for 90

days

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Trade war with Beijing intensifies

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Euro makes biggest one-day jump since 2022

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Reuters LIVE coverage

(Updates headline, first paragraph and prices throughout; adds

fresh analyst quote in paragraphs 16-17)

By Alun John and Chibuike Oguh

NEW YORK/LONDON, April 10 (Reuters) - The U.S. dollar

fell against its major peers on Thursday, hitting a ten-year low

against the safe-haven Swiss franc, as markets digested

President Donald Trump's dramatic reversal on tariffs.

Trump stunned financial markets on Wednesday by walking back

steep duties on trading partners that had gone into effect less

than 24 hours earlier. He granted a 90-day freeze on so-called

"Liberation Day" tariffs but maintained a 10% blanket duty on

most countries.

Tariffs on Chinese imports, however, were raised to 125%

with immediate effect, after Beijing countered previous U.S.

duties with an 84% tariff rate.

The U.S. dollar rebounded sharply against the safe-haven

Swiss franc and Japanese yen on Wednesday, while Wall Street's

main stock indexes leaped as the tariff reprieve brought some

relief to investors.

But traders were readjusting their positions on Thursday,

with the dollar dropping 2% to 144.795 yen and 3.6%

versus the Swiss franc to 0.82635. The benchmark S&P

500, Dow and Nasdaq share indexes fell

sharply.

The dollar has fallen 3.46% against the yen and nearly 6.5%

against the Swiss franc so far this month. It is on track for

the biggest one-day loss against the franc since January 2015.

"Up until yesterday's 90-day reprieve, there was a pretty

large dislocation in the market, across all markets in fact, and

full adjusting to the tariff regime. But now that there's a

pause, every adjustment is basically being re-readjusted," said

Eugene Epstein, head of structuring for North America at

Moneycorp in New Jersey.

Labor Department data on Thursday showed that U.S. consumer

prices unexpectedly fell in March although the improvement in

inflation is unlikely to be sustained in the wake of tariffs.

A drop in U.S. Treasury yields after a solid 10-year note

auction was also partly weighing on the greenback. The yield on

benchmark U.S. 10-year notes fell 2 basis points to

4.376%.

European Commission chief Ursula von der Leyen said on

Thursday the EU will pause its first countermeasures against

U.S. tariffs after Trump's pause.

The euro was up nearly 2.47% at $1.1221, after

hitting its highest since July 2023 and making its biggest

one-day jump since 2022. The pound was up 1.13% at $1.29720.

Risk sensitive currencies were also firmer. The Australian

dollar strengthened 1.24% to $0.62280, while the

Swedish crown rose 1.5% versus the dollar to 9.839

crowns.

China's central bank cut guidance for the official yuan rate

for a sixth successive trading session on Thursday, signalling

an intention to allow a very gradual depreciation.

Investors are waiting to see whether Chinese authorities use

currency depreciation as part of their trade war with the U.S.

The dollar weakened 0.49% to 7.307 yuan versus the

offshore Chinese yuan but remained above Tuesday's record low of

7.4288 yuan.

"Seeing the world as a zero-sum game is not very helpful. I

don't see this as a zero sum but that's what the

administration is pushing," said Marc Chandler, chief market

strategist at Bannockburn Global Forex LLC.

"The market requires a higher U.S. interest rate premium

to stay long dollar."