Trump’s tariff strategy has caused the greater drop in the dollar in the last three years. Analysts and experts indicate a loss of almost 10% in their value, with a dramatic acceleration in recent weeks, questioning the solidity of the currency. Investor distrust in the US economydriven by the reactivation of tariffs and political uncertainty, has caused a escape of capital of traditional assets, weakening their value.
The dollar in check: what presses its downward value
Despite the tariff exemption that was announced on April 12 for Chinese electronic and semiconductor products, which could relieve pressure on the dollar at the beginning of the week, it has been experiencing a significant recent depreciation.
In the last month, The dollar has fallen 4.3% against the euroquoting around $ 0.88 per euro. The downward trend is accentuated since the beginning of the year, with an accumulated drop of 9.2%, placing parity at approximately $ 0.97 per euro.
Investor Exodus indicates the alarm in the market
Financial experts attribute the weakness of the dollar to a significant “change of attitude” of global investors, who now avoid both the shares and the traditionally safe American treasure bonds, which implies a disinterest in Wall Street.
The tariff volatility promoted by the Trump administration, with its constant changes and retractions, is eroding the confidence of investors. The present instability, perceptible both in the US and in Europe, continues to generate economic uncertainty and justify financial caution.
-The action increases the perceived risk in actions in the US
The recent approval of the Republican Budget Plan in the Chamber has eroded the confidence of investors. The foreign currency bound, Francesco Pesole, points out that this action increases the perceived risk in American actions and bonds, transforming investment into a bet for many.
Uncertainty also surrounds the 90 -day deadline for high tariffs. Without a defined post-plating strategy, foreign investors remain cautious, given the doubt of whether the economic situation will improve or worsen after this period.
This depreciation of the dollar is detrimental, and offers an advantage for Europeans. A stronger euro increases its purchasing power when traveling or buying US products, functioning as an unexpected reduction thanks to the exchange rate.
Countries that will stop using the dollar
The dollar is losing ground globally. Several countries seek to strengthen their currencies and reduce their historical dependence on the dollar in international trade.
The countries of the community of Independent States (CEI): Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan and Russia, although before Georgia and Ukraine, are the main drivers of abandoning the legal coin of the American country.
