US tariff policy undermines investor confidence in dollar — Bloomberg

Donald Trump's aggressive tariff policy continues to negatively impact not only the US partner countries, but also the United States themselves. The latest Bloomberg data shows that investors are actively attempting to hedge against the dollar’s downside risks.

The index, which determines the outlook for the American currency in terms of trading, shows a sharp increase in bets on its weakening. These values have reached the ones recorded during the COVID-19 pandemic, the agency notes.

The dollar's instability under Donald Trump's trade policy is increasing market concerns. Investor confidence in the global reserve currency keeps weakening, Bloomberg experts say.

According to Chris Weston, Head of Research at Pepperstone Group Ltd, the US currency is facing great challenges that could trigger major structural shifts in the future.

The Bloomberg Dollar Spot Index declined more than 3% in April. On Monday, it dropped to the lowest level since October 2024, the agency reports.