The tariff policy introduced by the United States escalates its tensions with trading partners around the world and dampens the prospect for the country's economic growth, with the U.S. Dollar Index experiencing sharp drops from its recent January high, according several media outlets.
As of the close on Friday, the U.S. Dollar Index fell to 100.10, down a cumulative 9.1 percent from its intraday high of 110.18 on January 13.
Many media outlets contributed the sharp decline to the tariff policy of the U.S. President Donald Trump's administration, saying the sweeping tariffs are undermining the global status of the country's currency.
CNBC, a U.S. financial news channel, said on Saturday in an online news article that as the Treasury bonds and the dollar index slide, investors are increasingly worried that the U.S. financial market may bear growing harms from the aggressive and changing trade policies of the Trump administration.
"Treasury and the dollar typically benefit from flight-to-safety environments," the article said. But this time, "the market is re-assessing the structural attractiveness of the dollar as the world's global reserve currency and is undergoing a process of rapid de-dollarization," the online post quoted a recent remark from the Deutsche Bank strategist George Saravelos.
A Saturday online news article released by the Financial Times said fund managers think that the status of U.S. dollar is under threat from rising trade barriers and erratic policymaking.
The simultaneous sell-off in equities, bonds and the dollar in recent days pointed to a loss of faith in U.S. assets among international investors, and the policy uncertainty could lead to shifts in the dollar's use in the global economy, the article said while quoting the remarks from several specialists.
The sweeping tariffs have been triggering not only enormous volatility in the market but also wreaking harms to the U.S. consumers.
Appearing on a Bloomberg TV channel on Friday, former U.S. Treasury Secretary Larry Summers criticized the trade policies of the Trump administration, which has been bragging about the tariffs' benefits. He said it's fundamentally dishonest to make any claims that these tariffs are going to do anything other than be passed on in a form of higher prices.
US tariff policy harms status of dollar: media
