Despite a rebound in the latter half of last week, the US dollar index once again plummeted significantly this Monday. This is attributed to investors adopting a cautious stance towards future US trade policies while bracing themselves for the upcoming economic data releases. These figures could potentially reveal whether President Trump's trade war has begun impacting the US economy.
According to the latest market data, the US dollar index briefly fell below the 99 threshold in overnight trading, dropping to a low of 98.89. Notably, among non-US currencies, the US dollar fell by 1.1% against the Japanese yen, reaching 142.10. This marks the most significant single-day decline since April 10. Analysts suggest that the turbulence in Trump's policies has undermined investors' confidence in US assets, leading to the possibility of the dollar index recording its largest monthly decline since last July.
Furthermore, the performance of the US dollar index could potentially set a record for the worst since the Nixon era, particularly within the first 100 days of a presidency. From Trump's return to the White House on January 20 to April 25, the dollar index has cumulatively dropped nearly 9%. If this downward trend persists, it is expected to mark the most significant decline within the first 100 days of a presidency since Nixon's second term began in 1973.
Amidst the uncertainty of trade policies and the impending release of economic data, market confidence in the US dollar is gradually weakening. This sentiment could influence the dollar's trajectory in the coming months.
