The dollar maintains its decline amid economic uncertainty in the United States

The US dollar fell by almost 3.5% during last week's trading, recording its worst weekly performance since November 2022, as the dollar fell to 103.45, its lowest level since early November last year.

What are the reasons for this decline?

After President Donald Trump came out with a barrage of threats of tariffs, he imposes a tariff and then retreats from it again.

Trump announced last week that there was no room left for Canada and Mexico to negotiate a deal or even delay it, and one day after these statements, a one-month exemption was granted to automakers.

Then a day later, Trump suspended a 25% tax on almost all goods for Canada and Mexico, and Trump in response said that the big wave of tariffs would come in early April for a group of countries, including the European Union.

At the moment, the Chinese tariff of 20% is still in effect.

During an interview with Fox News yesterday, when Trump was asked about the threat of a recession, his response was that the economy is going through a transition period.

A Reuters poll showed that 91% of economists believe that the likelihood of a slowdown has increased under Trump's rapidly changing trade policies.

Investors are also now turning their attention to the upcoming consumer sentiment and inflation data for more insights on the US economic outlook.