The US dollar has hit rock bottom, plummeting to its lowest level in four years amidst a global market sell-off triggered by President Donald Trump's dismissal of concerns over the currency's slide. The greenback dropped 1.3% against a basket of currencies on Tuesday, followed by an additional 0.2% decline on Wednesday morning.
Trump's comments on Tuesday, which characterized the weaker dollar as "great", seem to have sent investors scrambling for safer havens like gold and the Swiss franc. The US dollar has tumbled by 10% over the past year, its largest one-day drop since April when Trump announced his tariff plans, sending global markets into a tailspin.
The dollar's slide is seen as both beneficial and detrimental, with market strategist Steve Sosnick noting that it can be advantageous for multinational companies operating internationally but may lead to increased import costs and inflationary pressures. The decline in the dollar has also propelled rival currencies like the Swiss franc and euro to multi-year highs, as traders seek out safe havens insulated from global volatility.
The Swiss franc has soared to its highest level against the dollar in over a decade, while the euro has surged to $1.20 against the dollar, setting a new milestone. Gold prices have also reached record highs, breaking through the $5,200 an ounce mark as investors seek safe haven assets during times of political uncertainty.
Analysts warn that the dollar's decline may not be temporary and that concerns over Trump's pressure on the Federal Reserve, combined with the economic outlook in the US and its rising debt load, could lead to further weakness. The Fed is set to announce its first interest rate decision of the year on Wednesday, when it is expected to keep rates on hold despite Trump's demands for policymakers to cut rates.
The situation has become increasingly volatile, with unprecedented attacks on the Fed's chair Jerome Powell and a justice department-led investigation into his alleged wrongdoing over renovations to the central bank's headquarters. With Powell's term set to expire in May, Trump may soon name a successor, further exacerbating uncertainty in global markets.
Trump's comments on Tuesday, which characterized the weaker dollar as "great", seem to have sent investors scrambling for safer havens like gold and the Swiss franc. The US dollar has tumbled by 10% over the past year, its largest one-day drop since April when Trump announced his tariff plans, sending global markets into a tailspin.
The dollar's slide is seen as both beneficial and detrimental, with market strategist Steve Sosnick noting that it can be advantageous for multinational companies operating internationally but may lead to increased import costs and inflationary pressures. The decline in the dollar has also propelled rival currencies like the Swiss franc and euro to multi-year highs, as traders seek out safe havens insulated from global volatility.
The Swiss franc has soared to its highest level against the dollar in over a decade, while the euro has surged to $1.20 against the dollar, setting a new milestone. Gold prices have also reached record highs, breaking through the $5,200 an ounce mark as investors seek safe haven assets during times of political uncertainty.
Analysts warn that the dollar's decline may not be temporary and that concerns over Trump's pressure on the Federal Reserve, combined with the economic outlook in the US and its rising debt load, could lead to further weakness. The Fed is set to announce its first interest rate decision of the year on Wednesday, when it is expected to keep rates on hold despite Trump's demands for policymakers to cut rates.
The situation has become increasingly volatile, with unprecedented attacks on the Fed's chair Jerome Powell and a justice department-led investigation into his alleged wrongdoing over renovations to the central bank's headquarters. With Powell's term set to expire in May, Trump may soon name a successor, further exacerbating uncertainty in global markets.
Just saw the latest charts on the USD and it's crazy how far it's dropped! 
10% down this year is insane 
And now the Swiss franc is outperforming like crazy 
up to a 20-year high 
meanwhile gold is also breaking records 
what's going on? 
The Fed is getting hit from all sides - pressure from Trump, attacks on Powell, and investigations 
and we're still waiting for the interest rate decision on Wednesday 
anyone think this can recover or is it game over? 
. I mean, who wouldn't want to trade their hard-earned cash for some fancy Swiss francs or euros? The dollar's been tanking all year and now it's like Trump's personal tweet storm has everyone running for the hills 
. This whole thing reeks of chaos and greed...
. Anyway, back to the US dollar... yeah, it's been on a wild ride lately 
I mean, on one hand, I guess it's good for multinational companies and all that jazz 
. And don't even get me started on the Swiss franc and euro going up 
. Like, who doesn't love a good currency exchange market drama? 
. Seriously though, analysts are warning that this might not be over anytime soon... we're talking Fed chair Jerome Powell getting attacked and investigated? 
also why are we talking about gold prices going up? aren't those just a hedge against inflation or something? i need to see some stats on this before i can even begin to care. where's the data? 
. The Fed needs to be careful with interest rates and all that jazz 
.
. I guess people just want something safe when there's chaos in the markets 
The US dollar has taken a hit, and it's not just about the market sell-off, it's also about the politics. I mean, come on, Donald Trump saying the weaker dollar is "great"?! 
It's like he thinks the whole world owes him a buck. And now we're seeing investors scrambling for safe havens like gold and the Swiss franc? It's like they're trying to escape something, not just invest in assets. 
! I mean, who doesn't love watching their savings go down the drain? The fact that it's 10% weaker than last year is actually a good thing for multinational companies, right? It means they'll be able to export more goods and make some extra cash 
The dollar just hit rock bottom and it's all because of that crazy guy Trump 
And now everyone's running to gold and safe havens... it's like the world is one big game of economic roulette 
What if the dollar doesn't bounce back? What if we're stuck with this new normal forever? 
I just don't get why investors can't have a good crisis without Trump throwing his 2 cents in 
.
I know some ppl might think it's great, but 10% drop in one year? 
! 
. Let's hope this volatility subsides soon 
so yeah i don't know man just keep an eye on it and see what happens
and gold prices are at an all time high 
for the best 
in a shark tank, but still swims around 
. Trump wants interest rates cut? Give me a break 
I swear, their fries were like butter 
anyway, speaking of butter, have you guys tried that new artisanal cheese brand? I'm obsessed with it 
