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Dollar Hits Three-Year Low as Gold and Swiss Franc Surge in Safe-Haven Shift

Uncertainty over US tariff policies and Federal Reserve independence raises concerns about the dollar's global reserve currency status.

Overview

  • The US dollar has declined by approximately 10% against the euro since January 2025, reaching its weakest level in over three years.
  • Gold prices have surged 20% year-to-date, hitting record highs of $3,245 per ounce, while the Swiss franc has appreciated by 10%.
  • Analysts attribute the dollar's decline to President Trump's chaotic tariff policies and attacks on Federal Reserve Chair Jerome Powell, which have fueled market uncertainty.
  • A weaker dollar benefits European consumers by reducing the cost of dollar-priced goods, helping to curb inflation in the Eurozone.
  • Despite the euro's gains, experts note it is not yet a viable alternative to the dollar as a global reserve currency, with potential future diversification including China's renminbi.