US Dollar Hits Lowest Value Since 2022

The value of the US dollar on Tuesday marked its lowest point since April of 2022.

The Details: According to the ICE US Dollar Index, the dollar was measured at 98.29 last Friday morning, and dropped to a low of 95.84 Tuesday afternoon, marking a nearly 2.5% decrease. The dollar on Thursday at 1PM EST was recorded at 96.23, making it a 2.09% decrease over the past five days. This slide marked the worst multi-day drop since President Donald Trump announced his "Liberation Day" tariffs, and the drop got worse after Trump said he was not concerned about the drop, saying "the dollar's doing great." Trump backed up his statement by saying "look at the business we're [the US] is doing" and mentioned he "used to fight like he** with China and Japan" because they would devalue their currency, adding that he didn't think it was fair when they devalued because it is hard to compete when you devalue.

The Index: The ICE US Dollar Index marks the value of the dollar relative to a grouping of six other major foreign currencies including the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. The index benchmarks the dollar's international strength, rising when it is stronger and falling when it weakens.

Precious Metals: With the dollar's fall, many have paid close attention to the prices of precious metals, which have broken records, as gold surged to $5,500 an ounce for the first time ever on Thursday. Gold and other precious metals are known as a "safe haven asset," especially when currencies like the US dollar appear to be growing in risk amid changes in the political and geopolitical landscapes.

Will US Dollar Be Dethroned? Paul Blustein, writing for Financial Times (Center bias) said "Warnings are resounding anew about risks to the global dominance of the US dollar" but added "Don't bet on dollar dethronement." The cause for the alarm, according to Blustein, "is no great mystery," explaining that Trump "has taken a wrecking ball to institutions and norms that undergird American economic and financial strength — most recently his intensified assault on Federal Reserve independence and capricious tariff threats against allies." While these scenarios may seem plausible, Blustein explained "they are misconceived," because "US currency is not only entrenched in the global financial system," adding that "the depth of that entrenchment is greater than is commonly realized."

Financial Crisis or Loud Forecast: Fox Business (Lean Right) highlighted the concerns of American economist Peter Schiff, who warned there is a financial crisis inbound for the US, and it will make 2008 look like a "Sunday school picnic." Schiff pointed to the surge in gold and the rally around it, saying it "signals looming dollar collapse." The rally is more than a hedge according to Schiff, who said that it should be viewed as "a warning that inflation is speeding up" while the US dollar is losing trust globally pointing to the nearness of "a major economic reckoning." The article also highlighted Senior Policy Analyst for the Independent Women's Forum, Carrie Sheffield, who said "some commentators 'like to make a play for TV time with loud forecasts' that often don't match reality." Sheffield went on to explain that the US government "is the primary reason gold has reached an all-time high price" while also noting that "inflation remained far lower" under Trump's policies than during the Biden administration. NBC News (Lean Left) focused on what they called "real-world impacts" saying "the value of the U.S. dollar directly affects consumers" while also adding that the weakening of the dollar could mean a boost for American exporters. 

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