Stocks, dollar stumble
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The US dollar slumped to its lowest level since 2023 as new tariff threats from President Donald Trump and the risk of a widening fiscal deficit drag on the currency’s appeal.
"Unless that changes, the dollar will remain on a much longer leash than any currency should rightfully have."
The U.S. dollar dropped across the board on Friday, as investors dumped the currency after U.S. President Donald Trump once again ratcheted up his trade war, recommending that the European Union be hit with 50% tariffs beginning June 1.
ESWAR PRASAD is Senior Professor of Trade Policy in the Dyson School of Applied Economics and Management at Cornell University, a Senior Fellow at the Brookings Institution, and the author of The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance.
With the Trump administration increasingly focused on striking deals to help weaken the dollar, a team of analysts at Deutsche Bank crunched the numbers and determined just how much the greenback would need to weaken to eliminate the U.
Donald Trump's latest tariff threats aren't helping the beleaguered dollar. The currency was lower on Friday—including against the euro, Japanese yen and Canadian dollar—after Trump targeted Apple and the European Union in his latest trade broadside.
The dollar jumped and government bonds sold off as markets reacted to a de-escalation in the trade war between China and the US, which agreed to temporarily lower some tariffs for 90 days.
Kenya's shilling was stable against the dollar on Thursday, with foreign exchange supply and demand well-matched, traders said.