The US dollar plunged to the 3-year low. Indeed, the American currency had a bad start of the year. Investors are lack optimism about the protectionist policy of US President Trump, and Treasury Secretary Steven Mnuchin has made things even worse. The policymaker was not only too relaxed about the dollar’s depreciation, but also said that the weak national currency may be a favorable factor for the economic development. “Obviously, a weaker dollar is good for us as it relates to trade and opportunities,” Mnuchin said, speaking at the World Economic Forum in Davos. This viewpoint of the US authorities who usually back the strong dollar has triggered a massive sell-off of the American currency. Besides, the greenback is falling as other developed countries, particularly in Europe, demonstrate growth.
As a result, the US dollar index, that tracks movements of the greenback against other six major currencies, plummeted below 90 points for the first time in three years. Furthermore, the greenback hit the 3-year low at 1.2356 against the euro and lost ground against the pound sterling and the yen. Most analysts expect even further declines. Such expectations are fueled by Trump’s protectionism and his stubborn attempts to make America first. This policy is thought to be risky for both the US dollar and the national economy.
