Since Trump's inauguration, the U.S. dollar has decreased by nearly 10%. This decline, predominantly in the last month, is fueled by aggressive trade policies that have shaken investor confidence and sparked fears of a looming trade war.
The U.S. dollar has long been considered a safe haven, but recent tariffs and policies under Trump have altered this perception.
On April 2, the Trump administration unveiled tariffs on U.S. imports, causing a 10% plunge in international equity prices and soaring volatility.
The simultaneous sell-off of dollars and Treasurys raises alarms about diminishing faith in U.S. assets. As investors flee, experts highlight the need for significant policy changes to restore trust in the dollar's security.
The dollar's decline could lead to decreased confidence in financial markets. This shift may accelerate efforts to replace the dollar in global trade, impacting countries dependent on it for commerce and reserves.
Experts are divided on the dollar's future. While some see its dominance as under threat due to faltering U.S. policy trust, others believe complete de-dollarization is unlikely without significant global cooperation.
Looking ahead, potential changes in global currency systems may arise. The U.S. might need to adjust its economic policies to regain investor trust, leading to an uncertain yet crucial period for the dollar's future.
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