The dollar under pressure: Why Trump's trade war is also a currency war
Briefly

The dollar has faced intense volatility since President Trump's inauguration, enduring a notable depreciation against the euro, now trading at $1.10. This decline is attributed to several factors, including proposed U.S. tariffs and fears of an economic slowdown. Meanwhile, Europe is increasing public spending to attract investors, raising the yield on Germany's 10-year bonds. The complex interplay of these economic trends leads to ongoing currency fluctuations and raises questions about the U.S. strategy regarding the dollar's strength amidst potential inflation.
The dollar's depreciation has been driven by Trump's tariff proposals and concerns over U.S. economic slowdown, causing volatility in the currency market.
Europe's public spending increases and higher bond yields aim to attract global investments, especially amidst rising tariffs and inflation fears in the U.S.
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