US dollar drops to three-year low as European stocks rebound again
The value of the US dollar has fallen in recent days to a new three-year low following the uncertainty over the impact of the Trump tariffs on the global economy.
The value of the dollar has seen a steep decline in recent days, today falling to 99.5, the lowest point for around three years.
Economists attribute this to markets losing confidence in the dollar as the world’s benchmark currency.
George Saravelos at Deutsche Bank said: “We argued yesterday night that despite President Trump’s reversal on tariffs, the damage to the USD has been done,. The market is re-assessing the structural attractiveness of the dollar as the world’s global reserve currency and is undergoing a process of rapid de-dollarization.
“Nowhere is this more evident than the continued and combined collapse in the currency and US bond market as this week comes to a close.”