By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
7
Notification Show More
Videos
Rare Earths Are China’s Trump Card In The trade war — How The U.S. Is Trying To Fix That
1 minute ago
Videos
Crypto’s resilience faces new test amid Middle East tensions and new legislation
24 hours ago
Videos
Tesla Opened A Diner In LA — Here’s What It’s Like
1 day ago
Videos
Meta’s Scale AI deal, Adobe earnings, Microsoft’s record high: Analyst weighs in
2 days ago
Videos
Why Even High Earners Are Living Paycheck To Paycheck
2 days ago
News
Empire State Realty Trust, Inc. (ESRT) Q2 2025 Earnings Call Transcript
2 days ago
Videos
Stocks slide as Middle East tensions rise, energy shares gain, crypto portfolio tips
3 days ago
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > Dollar sinks to three-year low on Trump tariff threat
News

Dollar sinks to three-year low on Trump tariff threat

News Room
Last updated: 2025/06/12 at 7:06 AM
By News Room
Share
4 Min Read
SHARE

Unlock the White House Watch newsletter for free

Your guide to what Trump’s second term means for Washington, business and the world

Donald Trump’s latest trade threats pushed the dollar to its lowest level in three years on Thursday as rising worries over trade and geopolitics piled fresh pressure on the currency.

The dollar was dragged lower after the US president told reporters he would send letters to trading partners outlining new tariff rates in the next couple of weeks, as the end of the 90-day pause on so-called “reciprocal” levies approaches next month.

The greenback fell 0.8 per cent against a basket of its trading partners, including the pound and the euro. The move means the currency has fallen past the low it hit in the wake of Trump’s “liberation day” tariff blitz in early April and to its weakest level since March 2022.

“[Trump’s] comment certainly points to renewed escalation in trade tensions ahead of the official deadline date,” said Derek Halpenny, an analyst at MUFG.

Investors were also digesting a trade truce between US and China announced on Wednesday, and rising tensions between the US, Israel and Iran, with the Trump administration authorising military personnel to leave the Middle East.

“We’ll see what happens,” Trump told reporters on Wednesday. “They [Iran] can’t have a nuclear weapon, very simple.”

While trade tensions have continued to weigh on the dollar, stocks have since rebounded from their April plunge, with the S&P 500 closing in on a fresh all-time high in recent days. Futures markets indicated a 0.5 per cent slide for the Wall Street benchmark on Thursday.

Stocks also fell in Europe, with the Stoxx Europe 600 down 0.9 per cent.

Lower-than-expected US inflation on Wednesday has also weighed on the dollar this week by opening the door for faster interest-rate cuts from the Federal Reserve. Futures markets are fully pricing in two quarter-point rate cuts from the Fed this year.

By contrast, signals from the European Central Bank last week that it may be close to the end of its rate cutting cycle have pushed the euro higher. It climbed to $1.160 against the dollar, its strongest level since November 2021.

The moves compounded a slide in the dollar that has taken it down about 10 per cent this year as economic worries over the trade war mix with concerns over a rising deficit and signs that some investors are reducing their exposure to US assets. A budgetary provision that would allow the government to raise taxes on foreign investments has added to the unease.

“Foreigners are selling every rally in the dollar on policy chaos, ballooning debt and other threats to their investments,” said Trevor Greetham, head of multi-asset at Royal London Asset Management.

Weakness in the greenback “has much more room to run”, said Vasileios Gkionakis, senior economist at Aviva Investors. “The shift away from US exceptionalism is driving the US risk premium higher and is weighing on the value of the dollar.”

Read the full article here

News Room June 12, 2025 June 12, 2025
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Rare Earths Are China’s Trump Card In The trade war — How The U.S. Is Trying To Fix That

Watch full video on YouTube

Crypto’s resilience faces new test amid Middle East tensions and new legislation

Watch full video on YouTube

Tesla Opened A Diner In LA — Here’s What It’s Like

Watch full video on YouTube

Meta’s Scale AI deal, Adobe earnings, Microsoft’s record high: Analyst weighs in

Watch full video on YouTube

Why Even High Earners Are Living Paycheck To Paycheck

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

News

Empire State Realty Trust, Inc. (ESRT) Q2 2025 Earnings Call Transcript

By News Room
News

Crown Castle Inc. 2025 Q2 – Results – Earnings Call Presentation (NYSE:CCI)

By News Room
News

Microsoft poaches top Google DeepMind staff in AI talent war

By News Room
News

White Brook Capital Partners Q2 2025 Commentary

By News Room
News

EU must strengthen Asian security ties despite US pressure, says Kaja Kallas

By News Room
News

US embassy in China warns exit bans risk straining bilateral relations

By News Room
News

Client Challenge

By News Room
News

Donald Trump’s escalating attacks on Federal Reserve unnerve investors

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?