Analysis-Mighty U.S. dollar feels heat as Trump’s tariffs spark trade turmoil

By RAE WEE

Singapore (Reuters) – In just a week, the dollar has gone from safe shelters to the guy who has left the investors, like US President Donald Trump’s chaotic tariffs, which are similar to decades in the world’s backup currency.

The sudden loss of trust did not give anywhere than in the treasury market, which has seen the largest weekly growth in loan costs since 1982, as offshore funds fled.

“The United States, almost overnight, seems to have lost its safe haven,” said Rentgenstle, the Australian Bank’s FX Strategy.

“There is a loss of trust … You meet the loss of uniqueness and in the short term, at least that’s what happens on a tariff front.

The dollar, which has already been on its worst year, fell on Friday during its worst year, and lowed its weakest level against the euro in more than three years.

“The entire territory of the dollar is challenged as a reserve currency, effectively, what we saw after the Trump’s election,” said Het.

It was in 1944 the creation of the Bretton Woods system, which cemented in Greenbuz in a global position. Post-war planners have developed a system built on exchange rate stability and international trade and the dollar has been dominated even in the early 1970s.

But Trump’s recent steps shock the perceptions on the trade. In a few days he set busy tariffs in the world, his decision made his decision and activated the trade war with China.

Global refrigerators spread dividing dollars, and world markets have passed in the tail.

“Regardless of how it develops in the next 90 days, the US international reputation has decomposed,” said Richard Jetsen, Chief Economist Richard Yetsen.

“The world economy is in a weaker position than it was ahead of tariffs.”

Martin Wait, the head of the Westpac’s financial markets strategy, said this week’s mass movement in the US dollar exchange, “Sharp Flash-Crash has moved higher in US treasury yield, and heavy dollar sales.”

“By losing or reducing the reliability as a financial safe asylum, creditors’ readiness to pay money to the United States,” he said.