The US dollar’s weakening is causing concern as it deviates from historical patterns. Typically, during economic downturns, the dollar strengthens as investors seek safer assets. However, this year has seen the opposite trend.
In April, President Trump introduced tariffs on nearly all American trading partners, sparking a global economic response. The US stock market has plummeted, while international markets have held up better. Treasury yields have also fallen, reflecting investor concerns about slowing growth.
The impact of these events is being felt across Asia, with many countries struggling to cope with the increased costs imposed by the tariffs. Economists are sounding the alarm on the potential consequences of this trade war, which could lead to a prolonged economic slowdown.
As one Malawian refugee camp in Dzaleka receives $9 per month from the US, it highlights the far-reaching effects of this move. The dollar’s value is also being affected by the volatility of tin prices, a critical metal that has seen significant price fluctuations due to increased demand.
Source: https://www.economist.com/finance-and-economics/2025/04/04/how-worrying-is-the-weakening-dollar