De-Dollarization: Investors Are Ditching US Dollar For Yen & Franc
President Donald Trump has adopted an aggressive stance when it comes to levying tariffs on nations. On April 2nd, Trump announced a fresh spree of reciprocal tariffs on nations to bolster the US economy. This development has, however, negatively impacted the investor sentiment that has lately been exploring other currencies as safe haven assets. That being said, Trump’s aggressive tariff policy has also been impacting the US dollar, leading it to experience fierce volatility. With investors exploring other currencies, is Trump truly adding more fuel to the rising de-dollarization narratives?
Also Read: Gold Hits Record $3,167: How Trump’s Tariffs Are Fueling the Surge
Major Currencies Win Against the US Dollar
Experts are predicting a volatile US economic future, with the US dollar noting fluctuations in its current market stance. On April 2nd, Trump announced a list of fresh reciprocal taxes, sparking active trade war fears on the horizon. Trump levied a 34% tariff on Chinese imports, followed by imposing 26% tariffs on Indian imports. This development has negatively impacted the global market stance, with investors seeking refuge in currencies other than the US dollar.
“Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic,’ which will keep markets on edge for the foreseeable future,” said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.
Per a recent Reuters report, investors are actively seeking refuge in currencies such as the euro, Japanese yen, and Swiss franc to protect their investments from further harm. In this wake, the yen strengthened to a three-week high against the US dollar, with the franc noting its strongest level, trading at 0.8754 against the US dollar.
“Negotiations are now going to be front of mind. This is probably the other big part of why we’re seeing some of these currencies outperform… It’s very difficult actually to see how other countries make concessions that would encourage the U.S. to lift these tariffs. And I think that’s a big underpriced risk,” said Nicholas Rees, Head Of Macro Research at Monex Europe.
Also Read: The 1 Cent Dream: Which Year Can Shiba Inu Reach $0.01?
Gold Against USD
In the middle of economic volatility, the US dollar is sliding heavily against gold, another safe haven asset, defeating the USD from all corners.
With Trump issuing fresh tariffs against nations, worries about nations issuing counter tariffs are also gaining momentum, sparking more market volatility in the process. The DXY index has already plunged, responding to current market conditions. Its presently stable at 102, after falling 1.6% % in the process.
Per Rashad Hajiyev, gold may soon breach a new price level amid the latest market chaos, touching $3400 in the process.
My view on gold: the path to $3,400… pic.twitter.com/DjXzssyOKI
— Rashad Hajiyev (@hajiyev_rashad) February 7, 2025
Also Read: De-dollarization Surges—This Major Economy Drops the U.S. Dollar
Read More
De-Dollarization: Investors Are Ditching US Dollar For Yen & Franc
President Donald Trump has adopted an aggressive stance when it comes to levying tariffs on nations. On April 2nd, Trump announced a fresh spree of reciprocal tariffs on nations to bolster the US economy. This development has, however, negatively impacted the investor sentiment that has lately been exploring other currencies as safe haven assets. That being said, Trump’s aggressive tariff policy has also been impacting the US dollar, leading it to experience fierce volatility. With investors exploring other currencies, is Trump truly adding more fuel to the rising de-dollarization narratives?
Also Read: Gold Hits Record $3,167: How Trump’s Tariffs Are Fueling the Surge
Major Currencies Win Against the US Dollar
Experts are predicting a volatile US economic future, with the US dollar noting fluctuations in its current market stance. On April 2nd, Trump announced a list of fresh reciprocal taxes, sparking active trade war fears on the horizon. Trump levied a 34% tariff on Chinese imports, followed by imposing 26% tariffs on Indian imports. This development has negatively impacted the global market stance, with investors seeking refuge in currencies other than the US dollar.
“Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic,’ which will keep markets on edge for the foreseeable future,” said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.
Per a recent Reuters report, investors are actively seeking refuge in currencies such as the euro, Japanese yen, and Swiss franc to protect their investments from further harm. In this wake, the yen strengthened to a three-week high against the US dollar, with the franc noting its strongest level, trading at 0.8754 against the US dollar.
“Negotiations are now going to be front of mind. This is probably the other big part of why we’re seeing some of these currencies outperform… It’s very difficult actually to see how other countries make concessions that would encourage the U.S. to lift these tariffs. And I think that’s a big underpriced risk,” said Nicholas Rees, Head Of Macro Research at Monex Europe.
Also Read: The 1 Cent Dream: Which Year Can Shiba Inu Reach $0.01?
Gold Against USD
In the middle of economic volatility, the US dollar is sliding heavily against gold, another safe haven asset, defeating the USD from all corners.
With Trump issuing fresh tariffs against nations, worries about nations issuing counter tariffs are also gaining momentum, sparking more market volatility in the process. The DXY index has already plunged, responding to current market conditions. Its presently stable at 102, after falling 1.6% % in the process.
Per Rashad Hajiyev, gold may soon breach a new price level amid the latest market chaos, touching $3400 in the process.
My view on gold: the path to $3,400… pic.twitter.com/DjXzssyOKI
— Rashad Hajiyev (@hajiyev_rashad) February 7, 2025
Also Read: De-dollarization Surges—This Major Economy Drops the U.S. Dollar
Read More