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Investors have been selling the US currency due to concerns that Trump’s economic policies threaten the safe-haven role of US dollar-denominated assets, with economists predicting that the president’s
“big beautiful” budget bill will drive the US national debt even higher.
Analysts at Unicredit said: “The US dollar is the most notable loser so far this year as it has lost 10% against other currencies, with investor concerns regarding Trump’s policies having weighed on the greenback. On the other hand, the euro has risen by 5%.”
David Morrison, a senior market analyst at the financial services company Trade Nation, said: “Trump’s tariffs, the fact that many investors view his administration as somewhat chaotic, along with concerns over US national debt have seen the dollar fall out of favour.”