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US Dollar Hits Three-Year Low as Tariff Fallout Deepens

The dollar's nearly 10% slide since January reflects shaken investor confidence, bolstering alternative currencies and fueling global de-dollarization efforts.

Americans across age groups are bracing for the possibility of a recession, and some are still reeling from their memories of 2008.

Overview

  • The US dollar has fallen nearly 10% since mid-January, reaching its lowest level in three years as of April 19, 2025.
  • President Trump's tariff policies, including the April 2 'Liberation Day' announcement, have reignited fears of inflation and recession, driving the dollar's decline.
  • Haven currencies like the Swiss franc, Japanese yen, and euro have surged to multi-year highs, benefiting from the dollar's weakness.
  • Export-driven economies, including China, Germany, and Japan, are gaining from the weaker dollar, which makes their goods more competitive globally.
  • The dollar's depreciation is accelerating calls for de-dollarization, with countries like Brazil, India, and Russia pushing to reduce reliance on the greenback in global trade.