The American dollar saw its largest weekly drop against other currencies on the forex market in months. The currency experienced a drop that is the largest it has felt in the last seven months, although the intensity of the drop varies based on the currencies that the dollar is compared to. The change occurs as there are concerns over how the tariffs produced by the United States could hurt the world economy.
The USD/EUR pair saw a drop from 0.86 to 0.851. The pair experienced a sizeable drop in the last week, although there were no particular rebounds in the past week when compared with other similar drops in recent time. The currency had fallen to 0.848 for a brief moment this past week.
The USD/CAD pair also saw a drop from 1.30 to 1.292. This pair has not found any larger rallies either. However, the pair has been hovering around the same 1.30 mark for much of the year, particularly since the end of April when it was listed at around the same value.
The USD/GBP pair experienced a better rebound versus the other currencies on the market. The pair was at around 0.765 at the start of the week and has since gotten very close to being back at that total. But the pair had dropped down in value by a few pips in the past week. The total fell to 0.753 for a brief moment before it could make a rebound.
The drops in the values of those American dollar-oriented pairs suggest that the American dollar is worth more money in many parts of the world and that people are not going to get much off of one single dollar when it is transferred to another currency, primarily when European currencies are considered.
However, the currency has been at risk of significant value changes in recent time. The development of the tariffs issued by the United States against various countries has caused concerns over the value of the American dollar. This comes as there are worries that the American economy could be hurt by the tariffs. There is also a potential for retaliatory tariffs to be issued by other countries as a means of retaliating against the United States following the issue of those tariffs.
The changes in the American dollar come amid many other developments in the forex industry. In particular, the South African rand and Turkish lira have both experienced a growth in their values, although much of this has not impacted other currencies around Europe. Therefore, the changes have not influenced the American dollar just as well. The Asian currencies on the market also grew in value with the Hong Kong dollar becoming more valuable.
The American dollar is expected to be monitored in the coming week to figure out how well the currency is growing. This includes looking at how well the currency will respond to changes in the market. The potential for new tariffs to develop, including plans for a new tariff against China, may influence how the value of the currency works.Advertisement