Why is the dollar index weakening? Slipped below 100 for the first time in 2 years

US Dollar Slips: The US dollar index declined in the fourth consecutive session on Friday, April 11, which slipped down from 100 points to 99.02 for the first time since July 2023. With this, the US dollar value declined by 4.21 percent in April. In the month of January, the dollar index came to the level of 110. Since then, it has declined by 9.31 percent. This decline in the dollar is a sign of the reduced trust of investors over the American economy, which is now a safe base or safe heaven, Swiss Frank, Japanese Yen, Euro and Gold.

Increasing pressure on US dollar

US President Donald Trump has imposed heavy tariffs on all its trading partners worldwide. This has increased the possibility of the US suffering serious economic consequences and recession. Due to this concern, investors are constantly withdrawing money from American assets. Due to this, the stock markets are declining. The pressure on the US dollar is increasing.

On Thursday, the US increased the tariff from 125 to 145 percent on import of Chinese goods. Requegeing this, China also increased the tariff on American imports from 84 percent to 125 percent. Due to this step of the two countries, the risk of trade war has increased even more.

Dollar has a big fall of 10 years

In the US, in the midst of increasing fears of recession, investors are getting attracted to safe currencies like Japanese Yen and Swiss Frank. On Friday, the dollar reached its lowest level of 10 years against Swiss Frank and reached a six -month low of the yen. At the same time, the euro reached $ 1.13855 with a 1.7 percent lead, which was last reached this level in February 2022. During this time, gold also touched a record high level.

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