The dollar fell to the lowest level since 2023 after Trump’s threat to Europe and “Apple”
The US dollar fell today, continuing its losses since the beginning of the year to exceed 7%, after US President Donald Trump threatened to impose new large customs duties on the European Union, which again raised investor fears about global trade policies.
The Bloomberg index for the immediate dollar decreased by 0.6%, approaching its lowest level since December 2023. Trump put forward the idea of imposing 50% fees on the goods received from the European Union, pointing to the absence of progress in commercial talks. This caused the progress of the euro against the dollar, which is already suffering from pressure from financial and political ambiguity.
Customs
“The significant increase in customs duties on American imports from the European Union is back to the forefront the possibility of economic recession in the United States, as well as the escalation of uncertainty at the political and economic levels,” said Arroup Chatge, a strategic expert at Wales Vargo Bank in New York.
This new decline in the dollar has made turmoil inside the currency market of 7.5 trillion dollars per day. Although the Trump administration recently reached agreements with some countries, the state of public uncertainty weakened the attractiveness of the US dollar as a safe haven. On the other hand, inflationary expectations rose, and safe haven currencies such as the Swiss franc, Japanese yen and the euro advanced.
The euro was traded with a value of 0.5% against the dollar this morning on the New York Stock Exchange, and the euro rose 0.8% before Trump threatened. The Japanese yen also jumped by 1.1% to be traded at the level of 142.45 against the dollar today.
“The anxiety associated with the United States budget suggests that the market is still reconsidering the thesis superiority of the American economy,” said Jin Foley, a strategy at Rabobank in London. She added: “Whether the cause of the budget is anxious, inflation or growth, investors have become more cautious about American assets, which continues to pressure the dollar.”
Weak US dollar
The JB Morgan Aseet Management Fund stated that the dollar has started to enter a period of twice as much as several years, with international investors reducing their excess investment centers in American assets. The market has become more likely to bet on the US dollar’s decline, as the trade war aggravated this year.
The speculators – including hedge funds and asset managers and others – have approximately $ 16.5 billion of investment centers that are betting on the weakness of the US dollar, which is close to the highest level since September, according to the data of the Future Commodities Trading Committee for the week ending May 13.
David Formster, along with a group of strategic experts in “Credit Agricole”, said: “Diversification flows will continue away from the dollar, even at a slower pace, given that the damage caused to the currency has already occurred. Investors question the ability of Trump to pass the financial motivation package through Congress, in the wake of reducing the last sovereign credit rating. Passing the draft law will increase the deepening of concerns Investors regarding the sustainability of public financial. “
Trump’s threat to “Apple”
Trump also threatened to impose a 25% tax on Apple if the manufacture of “iPhone” phones was not transferred to America, which led to a decline in the company’s share price, and increased the general sense of unstable policies that are difficult to predict.
A team of “Bank of America”, led by Mekhalis Rosakis, and Clado Peron, wrote: “Financial concerns have sparked twice the dollar. The value of the US dollar still reflects a negative risk allowance, as the uncertainty associated with customs duties has turned from a temporary issue to a structural issue.”
