US Dollar Falls 9% to 3-Year Low

The dollar has fallen 9% against a basket of currencies since  January, a rare and sharp decline, to its lowest level in three years.

The Associated Press reported, Friday, that many investors who are alarmed by US President Donald Trump's policies do not believe the dollar will be quickly pushed from its position as the world's reserve currency.

The report added that among the threats posed by tariffs to the US economy, none may be as unusual as the dollar sell-off, noting that currencies rise and fall all the time due to inflation concerns, central bank actions, and other factors.

It indicated that economists are concerned that the recent decline in the dollar is so dramatic that it reflects something more serious: President Donald Trump is trying to reshape global trade after losing confidence in the United States.

He pointed out that the dollar's dominance in cross-border trade as a safe haven has been fostered by the US administration for decades because it helps keep US borrowing costs low and allows Washington to project power abroad. These are tremendous advantages that could be lost if confidence in the United States is damaged.

The report stated that global trust and reliance on the dollar has been built over half a century or more, as University of California, Berkeley economist Barry Eichengreen says, "but it can be lost in the blink of an eye."

1 Euro equals 1.14 United States Dollar

1 Pound sterling equals 1.33 United States Dollar

1 Swiss Franc equals 1.22 United States Dollar