US tariff policy hurting USD
There has been some stability in the markets, as sentiments have improved following the announcement of trade agreements with the USA and UK.
This development has also positively impacted the foreign exchange market. However, the US Dollar is facing challenges, having lost nearly 6% to 7% of its value this year.
For many years, US assets have been considered a safe haven, but the current tariff policy seems to be hurting the USD. Investors are increasingly moving their assets to Europe, which appears more affordable and stable amid the ongoing global trade war and the associated uncertainties. This trend is likely one of the significant factors contributing to the sharp rise of the Euro this year.
Not all investors think about shifting their US investments. There are several reasons why investing outside the US can be risky.
One big concern is that markets can be hard to sell in times of uncertainty, which can cause big price swings and make it tough to cash out. Since these markets are usually smaller, a lot of assets moving in can increase risks even more.
Additionally, it’s noteworthy that US stocks, which experienced significant losses following “Liberation Day,” have nearly bounced back. Current focus is on the upcoming meeting between trade representatives from........
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