The value of the dollar to the Currency dive this week to the lowest level in three years, which is a consequence of the Escalation of the Customs War between the United States and China and the withdrawal of investors from US government bonds.
The dollar index, which shows the value of US towards the six most important currency, sank 3 percent last week, to 99.78 points, the lowest level in three years.
The euro course jumped 3.6 percent, to $ 1,1355, the highest level from February 2022. years.
The American currency weakened by Japanese, by 2.3 percent, so its price dive into 143.50 yen.
The sharp decline of Kursadolar the second week is the consequence of uncertainty due to the customs president of the US Donald Trump announces a little, a little delayed, so they increase them from China.
Last Wednesday Trump unexpectedly delayed additional, reciprocal customs for all countries except China, but left the basic customs from 10 percent to almost all imports. After that Trump decision, many countries said they were willing to negotiate. Among other things, the European Union, who delayed his countermeasures on Trump Customs.
But the customs war between Washington and Beijing continues because Trump has increased the overall customs rate to import Chinese goods to 145 percent. China in turn on the import of American goods increased customs duties to a total of 125 percent, SEEbiz reports.
That emasculation of the customs war between the two largest world economies could cause stakeholders and international trade, inflation growth and slowdown in the growth of the global economy, even the recession.
The dollar is otherwise for one of the secure currencies in the uncertain times, but as the American economy threaten growth, and even a recession, the dollar found themselves under pressure, while they were considered significantly as a safer refuge for equity in uncertain times. The course ‘Swiss’ towards the dollar reached the highest level in more than 10 years.
The dollar is under pressure and due to the reinforced sales of US government bonds, which is why yields on 10-year bonds reached about 4.5 percent. This represents the weekly growth of yields for 40 base points, which has not been recorded since 2001. years.
The fall of the dollar, along with the fall of Wall Street and American state bonds, may mean that foreign investors on Trump protectionist measures are appropriate to sell American property, analysts say.
“An obvious exodus from American property is not only a consequence of the assessment of the slowdown in the growth of the American economy and trade instability. There is also something more, it is a decline in the dollar and credibility of American policies.
So far, in periods of dislikeless investors, the dollar strengthened as a secure currency, but now the dollar is a pressure, while Japanese jen and the Swiss franc are strengthening, “he explains Win Thin, Strategist in Brown Brothers Harriman.
