It's 14:09 in Moscow, and the euro's soaring, trading at a whopping $1.136 (+1.51%). The euro just hit a high of $1.147, a sight not seen since February 2022.
U.S. currency depreciates, hitting three-year low versus euro currency.
Why's the greenback falling like a stone? Well, blame it on China's response to America's price hike. On April 12, China's Ministry of Finance announced a hefty 125% tariff on U.S. goods, a punch back to the U.S.'s 145% on Chinese goods (a White House insider spilled the beans to CNBC on April 10).
This drop in the dollar comes as its reputation takes a hit. Investors are ditching U.S. assets and jumping ship to safer waters like the Swiss franc, yen, euro, and gold. According to CNBC, “it's clear as day that we're in the midst of a crisis of confidence in the dollar.” Indeed, the dollar's sinking to a level not seen since January 2015 against the Swiss franc (Reuters knows all about it). On European trading, the dollar's dropped to 0.81150 Swiss francs, a near 4% plummet since April 10. It's also shedding 1.4% against the yen, to 142.37. And the gold rush continues, with gold jumping a record 1.4% to $3,219.23 per ounce!
The new tariff decisions have kick-started a global sell-off, hitting not just stocks but U.S. Treasury bonds too. The yield on 10-year Treasury bonds is looking at its biggest weekly jump since 2001. The dollar index, which measures the U.S. currency against six major currencies, has fallen a whopping 1.2% to below 100, a level last seen in July 2023.
So, if you're a fan of yen, euros, francs or gold...might be a good time to start hoarding!
Still thirsty for more cash insights? Check out our Telegram channel - @expert_mag for the lowdown on currency rates, dollar, USA, and beyond.
- The decline in the dollar's value in 2023 has exacerbated the confusion within the finance industry, as investors are increasingly skeptical of the greenback and are shifting their focus towards currencies like the Swiss franc, yen, euro, and even gold.
- In the realm of personal-finance, the industry is closely monitoring the changing dynamics of currency rates, particularly the depreciation of the dollar against the euro and other major currencies, which could significantly impact investing and business decisions.
- CNBC reported that the ongoing crisis of confidence in the dollar, primarily due to the new tariff decisions, has sparked the sell-off across various sectors, including stocks and U.S. Treasury bonds, and is likely to continue impacting the markets in 2023.
- By April 10, 2023, analysts from Reuters and CNBC were already predicting a drop in the dollar index, which measures the U.S. currency against major currencies like the Swiss franc, yen, and euro, with the index falling below 100.
- Amidst the uncertain financial landscape of 2023, keeping track of the fluctuating currency rates, particularly the dollar, is crucial for those involved in the stock market, investing, business, and even personal-finance, as the developments could lead to profitable opportunities or potential losses.
