The reasons for the decline of the dollar last period
The US dollar fell strongly on Friday for the second day in a row to the levels of 99.70, as the US dollar index fell to its lowest level in 21 months against a basket of major currencies, after the White House announced on Thursday that the tariffs imposed on China will be 145% and not 125% as it was previously.
Although this difference is insignificant in practical economic terms, the market reaction showed an increased sensitivity to the risks of disorderly economic separation between the world's two largest economies, despite the postponement of additional tariffs on other countries except China.
Since returning to the White House in January, Trump has repeatedly threatened a range of punitive measures on his trading partners, only to back off at the last minute, alarming the world and executives, who say the uncertainty has made it difficult to predict market conditions.
On the other hand, US inflation data fell on Thursday, as the US Consumer Price Index fell in March to 2.4% year-on-year, which is less than the forecast of 2.5%, and the Consumer Price Index for March excluding food and Energy fell to 2.8% year-on-year, which is less than the forecast of 3.0% year-on-year.
A look at the rest of the currencies and assets
As the intensive selling of dollars and bonds resumed, the yield of 10-year Treasury bonds (US10Y) rose to 4.444%, which is on track to achieve its largest weekly increase in 24 years, and 30-year bond yields (US30YT=RR) are expected to record their largest weekly jump since at least 1982.
The volatile reaction in the bond market this week has raised questions about the status of Treasuries as the safest asset in the world.
Gold prices also rose to a new record high above 3200 dollars per ounce and specifically at the levels of 3220 dollars, and it does not seem that the rise of the precious metal will stop with the continuation of safe haven flows.
The yen and the franc also rose strongly as they are safe haven currencies, with the yen rising to its best levels in 6 months, and the Swiss franc rising to its highest levels in 10 years.
Fears of a sharp slowdown in the global economy strongly shook the markets, with trading focused on currencies and bonds, as the escalation of the US-China trade war prompted investors to abandon their usual strategies and flee from dollar assets.
