Experts express concern that the US president’s policies may lead to panic in the market. The dollar has fallen to a seven-month low against the yen, facing new challenges. Donald Trump’s attacks on Federal Reserve Chairman Jerome Powell have further undermined investors’ confidence in the American economy.
This is reported by Finway
According to Reuters, the dollar accelerated its losses after the Prime Minister of Thailand announced the postponement of trade talks with Washington that were set to begin on Wednesday. The currency has dropped nearly to a ten-year low against the Swiss franc and returned to a 1.5-year low against the euro.
Criticism of the US President
On April 21, Trump intensified his criticism of Fed Chairman Jerome Powell, calling him a “major loser” and demanding an interest rate cut “now,” or else risk slowing economic growth. Meanwhile, Powell noted that the central bank must exercise patience in determining policy, and rates should not be lowered until it is clear that tariffs are not leading to sustained inflation growth.
“We are at an impasse, and there are concerns that actions may be taken to replace Powell, which would trigger real panic regarding the dollar,” said Eric Kuby, Chief Investment Officer at North Star Investment Management.
Market Situation
According to Kuby, in the trading sector, “every day that passes without deals providing any relief raises constant concern” that Trump will continue his policy in its current form, which could be “destructive to the economy.”
The dollar has decreased by 0.6% and has reached a key psychological level of 140 yen for the first time since mid-September. The exchange rate of the American currency has also dropped by 0.1%, standing at 0.8082 Swiss francs, approaching a ten-year low of 0.8042. The euro remained at 1.1535 dollars after rising to 1.1573 dollars for the first time since November 2021. The pound also appreciated by 0.25% to 1.3412 dollars, while the Australian dollar reached a new four-month high of 0.64385 dollars.