: Monday, 14 April 2025 6:27 pm
New Delhi,. US dollars declined by 0.7 percent on Monday. The American currency has weakened for the fifth consecutive day. This decline led to the three -year low of the dollar index (DXY) measuring the dollar strengthening compared to other major currencies in the world.
In early April, when US President Donald Trump announced ‘Liberation Day’, introducing his aggressive tariff policies, the dollar index has fallen by more than four percent since.
The trust of investors on the strength of the American economy is ending and they are withdrawing their money from American assets.
Addressing these concerns last week, President Trump said that the US dollar will always remain a ‘favorite currency’.
He said that if a country stops using dollars, then a phone call will be enough to turn its decision.
Despite their confidence, the market reactions have shown increasing nervousness.
Experts believe that the dollar still has no clear option as a global reserve currency, but the recent tussle over tariffs has created uncertainty.
Last week, the US increased tariffs on Chinese goods to 145 percent. In response, China increased the tariff on US imports from 84 percent to 125 percent.
Experts said, “This trade war has promoted global selling in markets.”
Even traditionally safe investment such as government bonds of America has been affected.
Returns on 10 -year -old American Treasury Bonds are now moving towards the biggest weekly boom since 2001, indicating that investors are demanding high returns for risk.
Meanwhile, on Friday last week, the rupee recorded the biggest one -day lead of two years, which increased by 0.75 percent due to a decline in weak dollars and crude oil prices.
The Indian currency closed at Rs 86.05 per dollar, which is much better than a closed level of Rs 86.70 per dollar on Thursday.
This improvement has occurred in investors amid increased concern about the US economy, causing a decline in dollar strength.
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