US dollar falls to lowest since 2022 on Trump's tariff threats
The US Dollar Index (DXY) fell below 97.8 on Thursday, June 12, which was the lowest value since 2022. Trading Economics writes about this.
The decline comes amid escalating trade tensions and geopolitical risks.
US President Donald Trump announced that he will send official letters to major trading partners within one to two weeks with plans to unilaterally impose new tariffs.
This should be a tool for pressure to conclude new trade agreements. There is currently a 90-day pause in the mutual imposition of tariffs, but it ends next month.
In addition, geopolitical threats have increased investor concerns. Iran has threatened to strike American bases if nuclear talks fail.
Another factor in the dollar's decline was fresh statistical data. Inflation in the US turned out to be lower than expected, which only strengthened forecasts of a possible reduction in the key rate by the Federal Reserve – not once, but twice by the end of the year.
Against this background, the dollar suffered the greatest losses against the euro, Swiss franc, and Japanese yen.
Over the past four weeks, the dollar index has fallen by 3.09%, and over the year, by 6.99%.
- On April 21, after Trump's attacks on the head of the Federal Reserve , the US dollar collapsed to a three-year low.
- During the first 100 days of Donald Trump's presidency, the US dollar showed its worst performance since the days of Richard Nixon.