The US dollar plunged to its lowest point in three years on April 21, reflecting deepening investor unease over President Donald Trump’s escalating economic policies and his confrontational stance toward Federal Reserve Chairman Jerome Powell. The sharp decline in the greenback has triggered renewed concerns about the health of the US economy, rattled global markets, and reignited fears of institutional instability at the heart of America’s financial system.

The ICE US Dollar Index – which measures the value of the dollar against a basket of six major currencies – fell more than 1% to 97.923, the lowest level seen since March 2022. The dollar posted notable losses against major global currencies including the euro, the British pound, the Japanese yen, and the Swiss franc. Most strikingly, it dropped below 80 rubles – a key psychological threshold – for the first time since June 2024.

At the heart of the dollar’s sudden decline is President Trump’s recent introduction of sweeping new tariffs under the banner of “Liberation Day,” which went into effect on April 2. The administration has imposed fresh levies on a broad range of imports from key trading partners, including the European Union, China, and Canada. While Trump and his allies claim the tariffs are designed to “restore economic sovereignty” and punish “unfair trade,” market analysts warn that they are doing far more harm than good.

“These tariffs are stoking fears of a global trade slowdown,” said Jennifer Lee, senior economist at BMO Capital Markets. “They’re introducing massive uncertainty into an........

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