The U.S. currency has gone down more than 10% in the last six months when compared to the currencies of U.S. trading partners. This is the worst start of the year since 1973, when Nixon took the U.S. off the gold standard.
Initially the value of the dollar jumped after Trump’s election, but the silliness with the tariffs and the looming increase in the government debt have been major factors in the dollar’s drop. When investors are concerned about future economic conditions, they look for a safe haven. The U.S. is no longer the default save haven.
Some info for this post was taken from Joe Rennison, “Dollar Has Worst Start To the Year Since 1973, New York Times, (2 July 2025), pp. B1, B4.
No comments:
Post a Comment