Next up for markets: A crisis of confidence in the U.S. dollar

Next up for markets: A crisis of confidence in the U.S. dollar

Greenback’s role as No.1 reserve currency called into doubt

The dollar is facing a radical change in various parts of the world, as several countries have decided to ban its use completely. This measure will impact not only local economies, but will also have global repercussions. With the ban on the dollar in circulation, the financial and trading systems of these countries will be forced to adapt to new forms of exchange and payment. In the following note, we tell you all the details.

Next up for markets: A crisis of confidence in the dollar

The dollar, for decades a safe haven, on Thursday fell about 1.7% in its biggest daily drop since November 2022

Tariff Wars Made Dollar a Risky Asset - Action Forex

The fall in the U.S. dollar accelerated at the start of April as the shock of trade tariffs caused capital flight from U.S. assets. We don’t know yet how long this trend will be. In finance, it is often said, “America sneezes, and the world gets a fever.” Even if the problems originated in the US, the impact on the markets of other countries will be more substantial.Dollar Index confirmed the prevailing downtrend.

The US currency recorded its biggest daily devaluation since November 2022, falling nearly 1.6%

Following the publication of a mixed employment report in the US and in parallel with the declines in global markets: the dollar index rises by 0.3%, the euro weakens by 0.4% against the US currency; in the local market: the dollar climbs by more than 1% to 3.73 shekels; the euro, with a slight decrease, is trading at 4.11 shekels