On Monday, the value of the dollar continued to decline. The dollar index, reflecting its exchange rate against the currencies of the six largest trading partners of the United States, fell below 97 points for the first time since March 2022, reaching 96.7 points. The euro rose to $1.1739, while the dollar weakened against the yen, falling from 144.67 to 143.89 yen. The reasons for the weakening of the US currency are related to both local and systemic factors. One of the key problems was the US budget deficit, which traditionally undermines the dollar's position. In addition, on the eve of the introduction of duties initiated by Trump, the volume of imports increased significantly, which worsened the trade deficit. As a result, the stability of the dollar as a reserve currency has been threatened. Tariff wars aimed at the largest holders of US debt, such as Europe, China, Japan and Canada, are stimulating a decline in the share of the dollar in their reserves, which reach 60-70%. This has increased the demand for gold and other currencies considered safer. If trade conflicts escalate, the dollar may continue to fall against world currencies.
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