On the currency markets last week, the value of the dollar against a basket of currencies plunged to the lowest level in three years, as a result of the escalation of the trade war between the United States (U.S.) and China and the withdrawal of investors from U.S. government bonds.
The dollar index, which shows the value of the U.S. currency against the six most important world currencies, sank last week by 3 percent, to 99.78 points, the lowest level in three years.
At the same time, the euro exchange rate jumped 3.6 percent, to 1.1355 dollars, the highest level since February 2022.
The U.S. currency also weakened against the Japanese one, by 2.3 percent, so its price plunged to 143.50 yen.
The sharp drop in the dollar exchange rate for the second week in a row is the result of uncertainty due to tariffs, which U.S. President Donald Trump sometimes announces, sometimes delays, and then increases them on imports from China.
