Bloomberg announced the dollar's maximum drop in 2.5 years due to Trump's tariffs
The dollar exchange rate showed the most significant drop in the last 2.5 years after US President Donald Trump imposed large-scale trade duties on imports of goods from the European Union (EU). As Bloomberg reported on August 3, a massive sale of the US currency is taking place on world markets.
According to Thursday's trading data, the Bloomberg Dollar Spot Index (BBDXY) fell 1.5% in one day, falling in price against all currencies of 10 developed countries. At the same time, the US currency fell by about 2% against the Japanese yen and the Swiss franc, and by more than 1% against the euro and the British pound. Against the Canadian dollar, the US dollar dropped to its lowest level since mid-December.
"The dollar turned out to be the main loser of last night's events. Right now, people are focused on the economic consequences that American duties may have for the United States itself," commented Sonya Martin, head of monetary and monetary Policy research at DZ Bank AB in Frankfurt.
On April 2, Trump announced that the United States would impose duties of 20% on goods from the European Union (EU), 34% on goods from the People's Republic of China (PRC) and a number of other countries. As Chinese economist Andrew Leung told Izvestia on April 3, the American leader is trying to bring production back to the United States by imposing tariffs on countries. He also believes that Trump wants to "revive the golden age" of the United States, when American monopolies and oligarchs tried to revive the country by attracting financial flows.
American economist Barry Eichengrick suggested on March 22 that the dollar could suffer due to the sanctions policy of the US president. According to the economist, Trump has weakened, "or even completely destroyed" relations with other countries in a few months, which could lead to the end of the dollar's existence as the world's leading currency.
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