The US dollar weakened on Monday towards most major currencies after President Donald Trump decided to postpone the planned customs from 50% on imports from the European Union, which were supposed to enter into force on 1 June.
The Trump decision followed a telephone conversation with the European Commission President Ursula Fon Der Lajen, who asked for an additional time to reach an agreement – until 9. July.
This announcement caused the growth of the so-called “Risk-on” currency. The euro jumped 0.55%, the Australian dollar 0.58%, while the New Zealand recorded a growth of 0.75%. The British pound reached the highest level from February 2022. year, while the JEN and Swiss franc remained relatively stable, the agencies are transferred.
Investors in the US policy greeted with relief, and the analysts point out that the confidence in the dollar was additionally shaken due to the Trump’s announcement of the Large Public Expenditure, which could increase American debt for almost $ 3.8 trillion in the next decade.
The dollar index, which accompanies the value of the US currency according to the six main world currencies, fell for an additional 0.3%, deepening last week’s drop of 1.9%. The market is increasingly speculating that the US currency could enter a multi-year stage of weakening.
Experts indicate that the Trump’s unpredictable trade policy, in combination with fiscal expansion, creates uncertainty that reduces investor appetite for US assets, while attention is increasingly targeting more stable markets and currencies.
