The dollar collapsed after the commercial war launched by Trump

The US currency on Thursday recorded an accelerated decrease, losing over 2.6% in relation to the euro, following the commercial war declaration launched by President Donald Trump, which caused concerns about the American economy, a movement that the single currency has never seen after 2015, according to Bloomberg.

Around 11:15 GMT, the dollar was down by 1.82% compared to the euro, which was listed at $ 1,1055, after previously reached $ 1,1144, the lowest level for American currency after September 2024.

The US currency depreciated by 1.13% and in relation to the pound, which was listed at $ 1,3156, and 1.76% compared to the Japanese Yen, given that a dollar was quoted at 146.65 yen.

« The depreciation of the dollar suggests that investors perceive a more important risk than it is expected to increase the American economy, which could constrain the federal (FED) reserve to reduce interest more than initially, » explains Ricardo Evangelist, director of Activ Activtrades.

But the smaller interest rates make the dollar less profitable for investors, so they are stimulated to give up this currency.

In parallel, « operators anticipate a multiplication of budgetary relaunch measures in Europe, which brings additional support for the single currency, » adds the analyst.

The protectionist offensive of the White House, unprecedented after the 1930s, translates into an additional 10% rate for all imports and by increases for countries considered particularly hostile to commercial matters. Thus, the EU goods will be targeted by 20%taxes, while the rates for Japan and Switzerland were fixed at 24%and 31%respectively.

Special targeted, Chinese products will be targeted by new 34% import fees, which will be added to additional 20% customs tariffs already introduced by Washington. This risks affecting the economic growth of China, say the analysts, which explains why the dollar was 0.3% on Thursday compared to the Chinese Yuan, the exchange rate being 7.2952 Yuani for a dollar.

« Without compensation measures on the budget, no tax decreases and no significant growth relaunch, the American economy will absorb the shock without any shock absorber, » warns Stephen Innes, an analyst at the spokes.

And this without taking into account, any reprisals of the countries targeted by Trump’s rates.

« Whether or not Trump will succeed in moving in the US, such an approach needs time, » Michael Pfister, in his turn, will be analyst at Commerzbank, and « Meanwhile, the US will have to import more expensive products. »