The dollar is experiencing its worst month in recent years

The US currency is experiencing its worst month since 2022 amid declining investor interest in American assets. In April, the dollar index declined by 4% due to large-scale sales of stocks and treasury bonds amid the turmoil caused by the imposition of trade duties. Market sentiment remains negative, which increases the demand for protection against a possible further decline.

The dollar lost ground despite forecasts from banking models of increased purchases at the end of the month to balance risks. The chaos of April revealed the vulnerability of dollar assets to large financial flows, which reach $7.5 trillion per day. Asset managers and exporters adjusted their portfolios, which caused significant movement in the foreign exchange markets.

Analysts' forecasts suggested a positive dollar movement due to active purchases, including $5 billion in corporate transactions. But even such a significant volume could not prevent the currency from falling by 0.5%, which underlines the dominance of sales at the end of the month.