"as it has little or nothing to do with the economic cycle: it is the financial world's response to the global order proposed by the U.S. president, whose first commandment (or second, depending on the day) is to limit risk. And from political fragmentation and the speed at which it is unfolding a different financial world is emerging, one in which the dollar and the U.S. have lost part of their aura of exceptionalism."
"The tectonic ruptures in geopolitics triggered by Donald Trump are reverberating in the currency market, just as they did nine months ago with the trade war. This week, the dollar hit 1.20 per euro, making trips to the United States, bourbon, and Fender electric guitars cheaper. The abrupt trend a drop of nearly 3% in just a few days looks set to continue,"
The U.S. dollar has weakened sharply, falling to about $1.20 per euro and dropping nearly 3% in a matter of days. The currency is down roughly 10% against a basket of the top ten currencies over the past year and close to 20% versus the euro since early 2025. The decline reflects a mix of short-term speculative flows and longer-term structural shifts as geopolitical and commercial fragmentation intensifies. Recent actions by Donald Trump, including attacks on the Federal Reserve, threats over Greenland, and intervention in Venezuela, have reinforced expectations of fragmentation. Investors are accelerating diversification away from dollar-centric holdings, reducing the dollar's safe-haven status and reshaping the international financial order.
Read at english.elpais.com
Unable to calculate read time
Collection
[
|
...
]