The US dollar drops in the strongest rate in three years

The US dollar dropped in the strongest rate in three years, while the cost of fence in the early 2020 jumped to its highest levels at more decline. Like the Swiss Frank and Japanese yen, while the euro and pound sterling also benefit from this shift. “Obviously, US assets show poor performance in light of the uncertainty associated with customs duties and the increasing concern about economic expectations in the United States,” says Felix Ryan, an analyst in a Z ‘banking group in Sydney. The cost of options used to hedge against the dollar has dropped to the highest levels since March 2020, compared to the costs associated with bets on profits. Raising the bets on additional interest rates in light of the increase in economic anxiety, the traders increased their interest in interest rates by the Federal Reserve by the end of the year. The shares fell again after the Trump administration announced the increase of customs duties on China to 145%. “The new fees on China have caused the yield of safe havens. The dollar is declining due to low expectations for US growth and the increasing expectations of federal reduction in the interest, in addition to transforming flow away from US equities to global markets,” said Jayati Bhardwaj, a CD -CD Sicorites. The global foreign exchange market, which is $ 7.5 billion a day, has lived a condition of tension since Donald Trump returned to the White House and declared volatile about customs policies. The dollar index has lost more than 6% since the peak in February, and it dropped 0.3% on Friday. The Swiss franc rose 4% on Thursday to 0.8254 against the dollar, in its largest jump since 2015, when the Central Bank of Swiss surprised the markets by giving up the currency against the euro. The Japanese yen is also offered by more than 2%. “The Swiss Frank achieves profits with the support of the demand for safe ports in light of the uncertainty about customs duties. Most asset managers use the Frank and Jen as instruments to hedge the risks,” says Brad Bishtal, head of the global exchange markets at Jeffrez Financial Group.