The U.S. currency resumed its rapid weakening Wednesday, hitting fresh lows against the euro, the British pound, the Japanese yen and the Swiss franc. The dollar decline has been historic, with the ICE U.S. Dollar Index, a measure of the dollar against a basket of currencies, slipping 8% this year, its worst start to a year since 1995.
Because of its role as the primary currency used for global trade and finance, swings in the dollar have significant global consequences.
“For exporters, you’re not getting the currency eroding some of the tariff impact for the end U.S. consumer,” said Derek Halpenny, the London-based head of global markets research for the Japanese bank MUFG. “It has a bigger negative impact for sure.”
A weak dollar makes the profits that foreign companies earn from their U.S. divisions worth less when translated back into euros or yen. It also makes the goods they produce more expensive for American consumers.
In Europe, the currency swings are likely to dent results at luxury goods houses such as Prada and LVMH, and beverage sellers such as Campari and Pernod Ricard, according to UBS.
Deutsche Bank cut its earnings forecasts for companies in the Stoxx Europe 600 index to 4% from 6%, citing weakening demand and the strength of the euro. The bank warned it could shave another percentage point of its growth forecast if the euro stays at its current level.
The decline in the dollar has come as a surprise to many. Economic textbooks teach that foreign currencies tend to weaken when economies are hit with tariffs, helping to make goods cheaper to offset the cost of the levies.
Instead, investors have reacted to Trump’s back-and-forth trade policies by dumping U.S. assets, unwinding huge bets they made in recent years on the idea that the U.S. would economically outshine the rest of the world. As investors sell U.S. dollar assets, they recycle them into home currencies, pushing up their value.
The slide in the dollar has fueled questions about the damage to the American economy from Trump’s shift in trade policy and whether the currency will remain a haven for investors in times of market stress.
The White House has sent mixed signals about its dollar preferences, but some of Trump’s economic advisers have signaled they want a weaker U.S. currency. Trump has in the past argued that the dollar’s strength has made American manufacturers uncompetitive and fueled the trade deficits that he wants to erase with tariffs.
Stronger foreign currencies are likely to weigh on already anemic growth in Europe, the U.K. and Japan. The currency reversal will likely mean fewer and lighter-spending American tourists, who have taken advantage of a strong dollar in recent years to go on trips to places such as Spain and Japan, boosting broader activity.
You have 0 awareness of what's been going on, which is the only reason you're surprised by any of this and are so retarded that you blame DJT for what is over 100 years old.
Please enlighten me with your alternative explanation what is going on with the stock market, treasury yields, gold price double to the U.S. dollar and going up $100 per day per ounce, etc.
So far I have been proven correct. Look at my track record. I've rarely been wrong about anything. I was wrong about my hypothesis that Trump would be banned from ballots in a few states. Other than that i have a good batting average.
The dollar will be devalued in terms of its ability to purchase gold, and it will never recover. You won't be able to get gold ounces for $2000 or $2500 again. $3000 is the never level and soon it will be $4000. The dollar is rapidly being devalued and it has little to actually do with tariffs.
Also basel iii, the compact between international banks, now allows gold to be held as a tier 1 asset. This puts it in direct competition with U.S. Treasuries now. Guess which one banks now prefer? Given the choice, they rather have gold.
If Powell lowers rates, which Trump wants him to do, then that pushes the gold price up even more.
Every twitch of the market, whether that's intraday or over a week, is MEANINGLESS. That's all you're responding to here, and you're merely regurgitating the official narrative spewed by pundits. SHAME ON YOU!
The Federal Reserve was created to collapse the US economy. BRICS (not the proposed currency, but the growing alliance) was created to escape using the USD as "global reserve currency." The hatred of US not beginning with Obama but greatly exacerbated by his apology tour is designed to stop the US habit of defending that US interest with our military. You're among the idiot crowd cheering for exactly that, and also claim it was "war for oil."
Duh.
DJT isn't about to rock that boat, he's not directing our military to reverse that course.
You demonstrate not even comprehending what a tariff is, much less DJT's strategy. Which is working, btw.
Trump tanked the market in 2020 and shut down the entire fucking economy over the Flu using UNconstitutional emergency powers that he is not actually granted by the fucking Constitution. He's a fucking retard. We will never be able to recover from the lost economic activity during Trump's ScamDemic, including his fake vaccine he blew billions of dollars on, and his PPP program which was full of so much Fraud Waste and Abuse that MAGAtards such as yourself don't want DOGE to reveal and highlight all the fucking waste in that program.
I'm not regurgitating mainstream talking points. It's actually you who is uttering mainstream MAGAtard nonsense, pretending that Trump knows what he's doing and he's playing 3D chess. Trump wants tariffs, then he freezes them, then he wants them again, then he freezes them again. He wants to fire Fed Chairman Powell. Then today he says he doesn't. Trump claims he wants a strong dollar. Then he claims he wants a weak dollar. Today Trump claims he wants to ease off untenable tariffs again China, meaning Trump is folding again. He's losing the fucking trade war, tanking the currency, isn't making shit from the tariffs so far, and is utterly fucking up which is obvious to anyone who is objectively analyzing this. Stop being a simp for Trump like you used to be a simp for Governor Cuomo. If you are managing a multi-billion dollar international corporate company, how the fuck do you master a 5-year Plan when TrumpTard the bozo ZOG puppet can't make up his fucking mind and can't even give decisive guidance what the fuck he intends to do other than talk shit on twitter and truth social? Trump has NO PLAN to balance the budget. The kikes advising him probably getting rich off the volatility.
The Federal Reserve was not created to collapse the U.S. Economy. It was created to steal from it. Go research and study the works of George Edward Griffin who wrote several books about the formation of the Federal Reserve.
BRICS, so far, is winning. Almost every currency is up against the dollar since Trump took office. Threatening everybody around the world with the use of Zionist Mercenary force is not the way you reach trade deals and strengthen foreigners' reliance and trust in your nation's currency. The only cheering here is you getting emotionally upset that Trump is fairly being criticized.
I don't want to pay tariffs on anything. I like slave labor chinks making my shoe laces for cheap. The entire idea of USA manufacturing trinkets is laughable. What does Trump expect? For USA to start up a bunch of factories to make shoes and t-shirts? Lazy Americans don't even mow their own grass. They're not going to go work in a factory 12 hours per day for shit pay.
Trump hasn't done shit to fix the budget problems. Trump is on pace to spend over $7 trillion for the first time. Trump might bring in less federal revenues than Biden did last year. DOGE was just a charade. Trump and his dipshit Republicans in the House and Senate passed a continuing resolution to continue Biden's budget until the end of the year. Trump is fucking up and it's going to lead to another credit downgrade because of the massive amount of debt and Trump and Republicans having no intelligent way to deal with it except more inflation and more fiat jewbuck money printing.
You demonstrate once again that you have nothing of value to contribute to a discussion. You never have. You've never contributed anything of value in the Christian forums. You never contribute anything funny in the c/Funny forum. You constantly mope and bitch and it's because Trump is just another one of a long line of Republican zionist suckups who sold you out and you can't cope with it in a healthy way.
You are not qualified to educate anyone. You're a bitter old simp who knows nothing about the Bible, politics, economics, finance, or shit else.
The U.S. currency resumed its rapid weakening Wednesday, hitting fresh lows against the euro, the British pound, the Japanese yen and the Swiss franc. The dollar decline has been historic, with the ICE U.S. Dollar Index, a measure of the dollar against a basket of currencies, slipping 8% this year, its worst start to a year since 1995.
Because of its role as the primary currency used for global trade and finance, swings in the dollar have significant global consequences.
“For exporters, you’re not getting the currency eroding some of the tariff impact for the end U.S. consumer,” said Derek Halpenny, the London-based head of global markets research for the Japanese bank MUFG. “It has a bigger negative impact for sure.”
A weak dollar makes the profits that foreign companies earn from their U.S. divisions worth less when translated back into euros or yen. It also makes the goods they produce more expensive for American consumers.
In Europe, the currency swings are likely to dent results at luxury goods houses such as Prada and LVMH, and beverage sellers such as Campari and Pernod Ricard, according to UBS.
Deutsche Bank cut its earnings forecasts for companies in the Stoxx Europe 600 index to 4% from 6%, citing weakening demand and the strength of the euro. The bank warned it could shave another percentage point of its growth forecast if the euro stays at its current level.
The decline in the dollar has come as a surprise to many. Economic textbooks teach that foreign currencies tend to weaken when economies are hit with tariffs, helping to make goods cheaper to offset the cost of the levies.
Instead, investors have reacted to Trump’s back-and-forth trade policies by dumping U.S. assets, unwinding huge bets they made in recent years on the idea that the U.S. would economically outshine the rest of the world. As investors sell U.S. dollar assets, they recycle them into home currencies, pushing up their value.
The slide in the dollar has fueled questions about the damage to the American economy from Trump’s shift in trade policy and whether the currency will remain a haven for investors in times of market stress.
The White House has sent mixed signals about its dollar preferences, but some of Trump’s economic advisers have signaled they want a weaker U.S. currency. Trump has in the past argued that the dollar’s strength has made American manufacturers uncompetitive and fueled the trade deficits that he wants to erase with tariffs.
Stronger foreign currencies are likely to weigh on already anemic growth in Europe, the U.K. and Japan. The currency reversal will likely mean fewer and lighter-spending American tourists, who have taken advantage of a strong dollar in recent years to go on trips to places such as Spain and Japan, boosting broader activity.
You have 0 awareness of what's been going on, which is the only reason you're surprised by any of this and are so retarded that you blame DJT for what is over 100 years old.
You are nothing more than a critic.
Please enlighten me with your alternative explanation what is going on with the stock market, treasury yields, gold price double to the U.S. dollar and going up $100 per day per ounce, etc.
So far I have been proven correct. Look at my track record. I've rarely been wrong about anything. I was wrong about my hypothesis that Trump would be banned from ballots in a few states. Other than that i have a good batting average.
The dollar will be devalued in terms of its ability to purchase gold, and it will never recover. You won't be able to get gold ounces for $2000 or $2500 again. $3000 is the never level and soon it will be $4000. The dollar is rapidly being devalued and it has little to actually do with tariffs.
Also basel iii, the compact between international banks, now allows gold to be held as a tier 1 asset. This puts it in direct competition with U.S. Treasuries now. Guess which one banks now prefer? Given the choice, they rather have gold.
If Powell lowers rates, which Trump wants him to do, then that pushes the gold price up even more.
Every twitch of the market, whether that's intraday or over a week, is MEANINGLESS. That's all you're responding to here, and you're merely regurgitating the official narrative spewed by pundits. SHAME ON YOU!
The Federal Reserve was created to collapse the US economy. BRICS (not the proposed currency, but the growing alliance) was created to escape using the USD as "global reserve currency." The hatred of US not beginning with Obama but greatly exacerbated by his apology tour is designed to stop the US habit of defending that US interest with our military. You're among the idiot crowd cheering for exactly that, and also claim it was "war for oil."
Duh.
DJT isn't about to rock that boat, he's not directing our military to reverse that course.
You demonstrate not even comprehending what a tariff is, much less DJT's strategy. Which is working, btw.
I don't get paid to educate morons like you.
Trump tanked the market in 2020 and shut down the entire fucking economy over the Flu using UNconstitutional emergency powers that he is not actually granted by the fucking Constitution. He's a fucking retard. We will never be able to recover from the lost economic activity during Trump's ScamDemic, including his fake vaccine he blew billions of dollars on, and his PPP program which was full of so much Fraud Waste and Abuse that MAGAtards such as yourself don't want DOGE to reveal and highlight all the fucking waste in that program.
I'm not regurgitating mainstream talking points. It's actually you who is uttering mainstream MAGAtard nonsense, pretending that Trump knows what he's doing and he's playing 3D chess. Trump wants tariffs, then he freezes them, then he wants them again, then he freezes them again. He wants to fire Fed Chairman Powell. Then today he says he doesn't. Trump claims he wants a strong dollar. Then he claims he wants a weak dollar. Today Trump claims he wants to ease off untenable tariffs again China, meaning Trump is folding again. He's losing the fucking trade war, tanking the currency, isn't making shit from the tariffs so far, and is utterly fucking up which is obvious to anyone who is objectively analyzing this. Stop being a simp for Trump like you used to be a simp for Governor Cuomo. If you are managing a multi-billion dollar international corporate company, how the fuck do you master a 5-year Plan when TrumpTard the bozo ZOG puppet can't make up his fucking mind and can't even give decisive guidance what the fuck he intends to do other than talk shit on twitter and truth social? Trump has NO PLAN to balance the budget. The kikes advising him probably getting rich off the volatility.
The Federal Reserve was not created to collapse the U.S. Economy. It was created to steal from it. Go research and study the works of George Edward Griffin who wrote several books about the formation of the Federal Reserve.
BRICS, so far, is winning. Almost every currency is up against the dollar since Trump took office. Threatening everybody around the world with the use of Zionist Mercenary force is not the way you reach trade deals and strengthen foreigners' reliance and trust in your nation's currency. The only cheering here is you getting emotionally upset that Trump is fairly being criticized.
I don't want to pay tariffs on anything. I like slave labor chinks making my shoe laces for cheap. The entire idea of USA manufacturing trinkets is laughable. What does Trump expect? For USA to start up a bunch of factories to make shoes and t-shirts? Lazy Americans don't even mow their own grass. They're not going to go work in a factory 12 hours per day for shit pay.
Trump hasn't done shit to fix the budget problems. Trump is on pace to spend over $7 trillion for the first time. Trump might bring in less federal revenues than Biden did last year. DOGE was just a charade. Trump and his dipshit Republicans in the House and Senate passed a continuing resolution to continue Biden's budget until the end of the year. Trump is fucking up and it's going to lead to another credit downgrade because of the massive amount of debt and Trump and Republicans having no intelligent way to deal with it except more inflation and more fiat jewbuck money printing.
You demonstrate once again that you have nothing of value to contribute to a discussion. You never have. You've never contributed anything of value in the Christian forums. You never contribute anything funny in the c/Funny forum. You constantly mope and bitch and it's because Trump is just another one of a long line of Republican zionist suckups who sold you out and you can't cope with it in a healthy way.
You are not qualified to educate anyone. You're a bitter old simp who knows nothing about the Bible, politics, economics, finance, or shit else.