New Delhi— The U.S. dollar extended its losing streak on Monday, falling 0.7% and marking its fifth consecutive day of decline. The drop pushed the Dollar Index (DXY), which tracks the greenback’s performance against a basket of major currencies, to its lowest level in three years.
The slump follows a turbulent start to April, when President Donald Trump declared “Liberation Day” while announcing sweeping new tariffs. Since then, the dollar index has fallen more than 4%, reflecting mounting investor unease over the U.S. economic outlook.
Investor confidence has been shaken by fears of a prolonged trade war and weakening domestic growth, prompting a pullback from U.S. assets. Although President Trump attempted to reassure markets last week, declaring the dollar would “always remain the currency of choice,” his comments did little to stem the decline.
“If any country tries to move away from the dollar, one phone call will bring them back,” Trump said. However, global markets remain jittery.
Analysts note that while there is still no true rival to the dollar as the world’s primary reserve currency, escalating trade disputes have introduced a wave of uncertainty.
Last week, the U.S. raised tariffs on Chinese imports to a cumulative 145%, prompting China to retaliate by increasing tariffs on American goods from 84% to 125%.
“This trade battle has triggered a global sell-off,” market analysts said. Even typically stable assets like U.S. Treasury bonds have taken a hit. Yields on 10-year Treasury notes are on track for their biggest weekly gain since 2001, a sign investors are demanding higher returns for perceived risk.
In contrast, the Indian rupee posted its strongest single-day gain in over two years last Friday, rising 0.75% amid the dollar’s weakness and a dip in global crude oil prices. The rupee closed at 86.05 per dollar, up from 86.70 the previous day, as confidence in U.S. economic strength continued to waver. (Source: IANS)
