Dollar tumbles to 6-month low amid trade war
The dollar has plunged to its lowest level in six months, hit by worsening global trade tensions and fears over U.S. economic growth.
A Bloomberg index shows a sharp drop in the dollar as investors flee U.S. assets.
Safe havens such as the Japanese yen, Swiss franc, and gold have surged.
The euro also climbed to its highest level in more than two years.
Foreign exchange experts say “dollar confidence is under threat” as doubts grow about its reserve currency status.
Slowing U.S. growth and rising national debt are fueling the fall.
The S&P 500 also tumbled 3.5% Thursday, while long-term U.S. bonds weakened.
Traders now expect the Federal Reserve to cut interest rates by 90 basis points this year to counter the damage from President Donald Trump’s aggressive tariffs on China.
The yen jumped to its strongest level since September.
The Swiss franc reached a price not seen since 2015, and gold hit a new record.
Market experts warn the dollar’s slide could continue unless trade tensions ease.
Investors are closely watching China’s moves in Trump’s latest trade war.
He has hiked tariffs to 145% and has signaled more could follow once a 90-day pause ends.
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