Potential Tariffs and Political Shocks: The Dollar Falls to Its Lowest Level Since 2023

The U.S. dollar has fallen to its lowest levels since 2023,
amid escalating trade and political tensions following sharp statements
by Donald Trump targeting the European Union and Apple Inc.

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Dollar
Markets
Apple

Dollar

U.S. Dollar Losses Surpass 7% Since the Start of the Year
The U.S. dollar continued its decline today, reaching its lowest level since December 2023,
after a sudden escalation by former President Donald Trump,
who threatened to impose tariffs of up to 50% on imports from the European Union.
He also warned Apple with heavy taxation unless it relocates iPhone manufacturing to the United States.

The Bloomberg Dollar Spot Index dropped by 0.6%,
reflecting growing investor concerns over intensifying trade tensions and their potential impact on the U.S. economy.

Markets

Market and Currency Reactions
Trump’s remarks strengthened safe-haven currencies at the expense of the dollar.
The Japanese yen rose by 1.1%, trading at 142.45 per dollar, while the euro climbed 0.5% during trading on the New York Stock Exchange.
These currencies had already been on the rise prior to Trump’s threats,
driven by waning confidence in the U.S. economy.

Analysts at Wells Fargo Bank noted that the escalation of the trade war could revive fears of a recession in the United States,
amid growing political and financial uncertainty.

Declining Confidence in the Dollar as a Safe Haven
According to J.P. Morgan Asset Management, the dollar has entered a prolonged phase of weakness due to reduced foreign investment in U.S. assets. Data from the Commodity Futures Trading Commission shows that speculative positions betting on a weaker dollar have reached $16.5 billion—near their highest level since September.

Experts at Crédit Agricole believe that the exodus from the dollar will continue, albeit gradually,
due to the damage already sustained and growing doubts about Trump’s ability to pass his fiscal agenda following a downgrade of the U.S. credit rating.

Apple

Pressure on Apple and Investors
In a further escalation, Trump threatened to impose a 25% tax on Apple products, which led to a decline in the company’s stock price and heightened concerns about the unpredictability of U.S. economic policies.

A report by Bank of America concluded that these developments indicate that concerns over tariffs have shifted from being temporary to structural, adding continuous downward pressure on the dollar’s value in global markets.

Potential Tariffs and Political Shocks: The Dollar Falls to Its Lowest Level Since 2023

Potential Tariffs and Political Shocks: The Dollar Falls to Its Lowest Level Since 2023

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