The dollar .. the most recent victim of customs duties

The dollar is the latest victim of the market unrest this week, in light of the escalation of the global trade war warning that economic growth in the United States is being undermined. The Bloomberg index to measure the performance of the green currency Friday to the lowest level in six months, in the context of a wave of broader exits of US assets to the increase in trade tensions between the two largest economies in the world. Safe ports such as Jen, Swiss Frank and Gold have benefited from these outfits. Christopher Wong, a currency expert at ‘Overness Banking Corp’, said confidence in the dollar is being threatened. Friday’s movements ended another week, turbulent in global markets, with Trump’s commercial policy changes fast, which did not allow investors to determine their next step. The dollar scored its biggest decline in more than two years on Thursday, amid increasing expectations that the Federal Reserve be forced to lower interest rates to tackle the contraction due to US customs duties. Other US origin was also subjected to strong pressure. The S&B 500 index closed on Thursday’s session, with 3.5%, while Treasury bonds dropped in long term. The bodies of the index for one night showed that the interest reduced the interest during the current year by about 90 basis points. Safe ports against the dollar The demand for safe ports has increased in light of the rush of investors to high quality assets. The yen jumped by more than 1% to 142.89 against the dollar on Friday, the highest level since last September. As for the Swiss franc, it rose to 0.8141 against the dollar, a level that has not been recorded since early 2015, while Gold has risen to a new record. The euro also benefited from the dollar to $ 1,1383, the highest level since February 2022. The rapid decline in the prospects of the US economy represents a fundamental shift compared to the previous expectations that Trump’s return to the White House will lead to a reduction in tax, accelerate the growth and increase the power of the dollar. Traders are now awaiting Beijing’s response after the US administration showed that customs duties on China rose to 145%. The mystery still surrounds what will happen after the 90 -day resilience, which has increased customs duties on dozens of other countries. “Unless there is a belief that achieving an imminent solution, the market is likely to remain at its current lane, that is, the dollar exit,” said Rodrigo Catteriel, a strategy at the National Australia Bank Ltd in Sydney. He added: “The current narrative that promotes the exit of US assets and sells the dollar will remain in place, as long as commercial tensions continue to increase.”