The US Dollar has experienced a notable decline, with the US Dollar Index ($DXY) falling 3.5% last week, marking its second-largest drop since the onset of the pandemic in 2020. This decline has put the index on track for a third consecutive monthly decrease. The Euro has strengthened significantly, rising 4.7% against the USD, its largest increase since 2009. The weakening dollar has raised concerns among investors regarding potential impacts on U.S. inflation and economic growth, particularly amid escalating global trade tensions. Despite this downturn, there have been brief recoveries, with the dollar gaining against major currencies, including the yen, on certain days. However, the overall outlook remains cautious as markets react to ongoing economic uncertainties.
US dollar firm, euro drifts as global trade tensions escalate https://t.co/4tibdsNJmA via @Reuters https://t.co/vJAsq5pSx3
U.S. dollar strengthens as euro retreats from 5-month high amid escalating global trade tensions. Markets on edge as economic downturn fears grow. #ForexMarkets #TradeWar
US dollar rises as markets consolidate positions; outlook remains downbeat https://t.co/khXUlQWZD8 via @Reuters https://t.co/4o9vheXKX5