The greenback\u2019s plunge has been attributed to market turmoil created by US President Donald Trump\u2019s policies<\/p>\n
Traders are betting big that the US dollar will continue to fall amid uncertainty about Washington\u2019s political and economic policies, Bloomberg has reported.
\nThe dollar suffered its worst single-day decline in nearly a year on Tuesday, plunging to its lowest level since February 2022. The fall was part of a broader downtrend that began after US President Donald Trump launched sweeping global tariffs early last year. The resulting trade frictions, as well as expectations of Federal Reserve rate cuts and rising deficits and debt have been undermining confidence in the currency.
\n\u201cUS policy volatility is now debasing the dollar,\u201d said Luis Costa, Citi\u2019s head of emerging markets strategy. \u201cThis\u2026 is prompting a market reshuffle into dollar shorts.\u201d
\nBloomberg said options that profit from a falling dollar are now the most expensive since 2011, as traders use them as insurance against a drop. Markets are also more negative on the dollar\u2019s long-term outlook than at any point since May 2025, the outlet noted. Rising investor anxiety is pushing up hedging costs, with short-term dollar volatility at its highest since September and demand for protection against large swings climbing, signaling traders expect further losses.<\/p>\n
Read more<\/p>\n
US dollar hits four-year low after Trump says it\u2019s \u2018doing great\u2019<\/p>\n
The dollar\u2019s selloff this week came just after Trump dismissed concerns over the currency\u2019s weakness, insisting that it\u2019s \u201cdoing great.\u201d
\nWhile a weaker dollar can help multinationals convert foreign profits and boost US exporters\u2019 competitiveness, critics warn it also risks acting as a hidden tax on consumers, raising import costs, fueling inflation, harming foreign suppliers, and undermining the greenback\u2019s global standing as a reserve currency.
\nUS Treasury Secretary Scott Bessent on Wednesday argued that, over time, Trump\u2019s economic policies will attract investment and help strengthen the greenback.
\n\u201cThe prices on the screen can fluctuate over six months, a year,\u201d he stated. \u201cIf we have sound policies the money will flow in, and we are bringing down our trade deficits so, automatically that should lead to more dollar strength over time.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The greenback\u2019s plunge has been attributed to market turmoil created by US President Donald Trump\u2019s policies Traders are betting big that the US dollar will continue to fall amid uncertainty…<\/p>\n","protected":false},"author":1,"featured_media":27757,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-27756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/posts\/27756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27756"}],"version-history":[{"count":0,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/posts\/27756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/media\/27757"}],"wp:attachment":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}