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CNN: Trump Has "collapsed" The Dollar Even Though Everyone Expected The Opposite

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CNN: Trump Has "collapsed" The Dollar Even Though Everyone Expected The Opposite

Experts have given the reason.

The U.S. dollar is experiencing its worst year in decades, with the currency falling precipitously amid a stock market recovery - following U.S. President Donald Trump's duty-related slump - as well as steady demand for bonds. In particular, the dollar index has fallen nearly 10% since the start of 2025 - and was at its lowest level since 2022 on June 25. The reason for this weakening of the U.S. currency in expert circles see in Trump and his duties.

This is stated in the material CNN. It is noted: the market expected that the arrival of Trump will strengthen the dollar. In particular, it was assumed that:

The policy of tax relief will stimulate economic growth.

The imposition of duties will reduce the demand for foreign imports.

"However, the dollar weakened. As Trump's duties - and his inconsistent decisions to impose, suspend, raise and lower them - have brought uncertainty to markets and clouded the outlook for the U.S. economy. .... Investors do not like uncertainty," the analysts stated.

It is emphasized: there is a view in economic and financial circles that the growth of the US economy is slowing down because of this uncertainty. And the dollar's weakness may also "raise doubts about its safe haven status" - i.e., investors may no longer consider the U.S. currency a reliable and stable asset that they traditionally turn to in times of economic or geopolitical instability.

"Foreign investors who buy U.S. bonds are interested in a strong dollar in order to get the maximum benefit when converting earnings into their currency. A weakening dollar reduces their return on investment. If demand for the dollar begins to decline, Treasury bond yields could rise, increasing the cost of borrowing for both the U.S. government and consumers," the analysts acknowledged.

In addition, they note, the dollar's decline reflects a crisis of confidence in the U.S. as a country. The point, they emphasize, is that:

In recent months, the perception of the U.S. as a reliable destination for global capital "is beginning to crack."

The lack of ability to assess with certainty the U.S. administration's position is preventing investors from making decisions about investing in the U.S.

"The dollar's status as a reliable currency is being questioned. .... It doesn't mean the dollar will lose its dominance. It doesn't mean it will be completely displaced. Nevertheless, we can now say that its dominant role is beginning to fade faster than in previous years," the authors of the material stated.

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