Dollar falls to multi-month lows on uncertainty over tariffs, the Fed, and shutdown threat
Who benefits from this decision?
The value of the dollar continued to drop on Monday, falling to a four-month low as uncertainty surrounding tariffs, the Federal Reserve, and a potential government shutdown put downward pressure on the greenback.
The dollar index dropped as low as 96.85 on Monday, down from recent highs of over 99 just last week. The Bloomberg Dollar Spot Index reached nearly 110 in January 2025. The relative value of the greenback has fallen 11.7% since that time in January of last year.
ACCUSATIONS OF INSIDER TRADING ON MADURO OPERATION BRING PREDICTION MARKETS INTO FOCUS
The most recent dip is attributable to quickly evolving factors, such as a possible intervention to help the struggling Japanese yen and the growing potential for yet another government shutdown in the coming days.
But in the longer term, experts contend the dollar’s slide is being fueled by uncertainty in the U.S. economy, mounting concerns about the independence of the Fed and questions about what might come next for federal tariff policy.
“If I had to summarize the dollar, defining in one word, it would be uncertainty,” Steve Swedberg, finance and monetary policy analyst at the Competitive Enterprise Institute, told the Washington Examiner.
Still, while the dollar has fallen directionally in recent days, and more broadly over the past year or so, it is still at levels that historically haven’t set off alarm bells. For instance, it was in the 70s and 80s for years following the 2008 financial crisis.
The White House told the Washington Examiner on Monday that President Donald Trump remains committed to a strong dollar.
“President Trump remains committed to the strength and power of the U.S. Dollar as the world’s reserve currency,” spokesman Kush Desai said in a statement. “Foreign holdings of U.S. Treasuries reaching an all-time high and trillions in investment commitments to make and hire in America are all proof that the Trump administration’s policies are cementing America’s economic might.”
The yen
On Monday, speculation began to mount that given weakness in the Japanese yen, there might be some sort of intervention.
The Federal Reserve Bank of New York has reportedly checked dollar and yen rates with dealers, which is seen as a precursor to a possible intervention. The yen strengthened on the news, while the dollar dipped in response.
“[The Bank of Japan] would sell dollars and buy yen to strengthen the yen currency — that would strengthen the yen, you would offer more dollars to …
Who benefits from this decision?
The value of the dollar continued to drop on Monday, falling to a four-month low as uncertainty surrounding tariffs, the Federal Reserve, and a potential government shutdown put downward pressure on the greenback.
The dollar index dropped as low as 96.85 on Monday, down from recent highs of over 99 just last week. The Bloomberg Dollar Spot Index reached nearly 110 in January 2025. The relative value of the greenback has fallen 11.7% since that time in January of last year.
ACCUSATIONS OF INSIDER TRADING ON MADURO OPERATION BRING PREDICTION MARKETS INTO FOCUS
The most recent dip is attributable to quickly evolving factors, such as a possible intervention to help the struggling Japanese yen and the growing potential for yet another government shutdown in the coming days.
But in the longer term, experts contend the dollar’s slide is being fueled by uncertainty in the U.S. economy, mounting concerns about the independence of the Fed and questions about what might come next for federal tariff policy.
“If I had to summarize the dollar, defining in one word, it would be uncertainty,” Steve Swedberg, finance and monetary policy analyst at the Competitive Enterprise Institute, told the Washington Examiner.
Still, while the dollar has fallen directionally in recent days, and more broadly over the past year or so, it is still at levels that historically haven’t set off alarm bells. For instance, it was in the 70s and 80s for years following the 2008 financial crisis.
The White House told the Washington Examiner on Monday that President Donald Trump remains committed to a strong dollar.
“President Trump remains committed to the strength and power of the U.S. Dollar as the world’s reserve currency,” spokesman Kush Desai said in a statement. “Foreign holdings of U.S. Treasuries reaching an all-time high and trillions in investment commitments to make and hire in America are all proof that the Trump administration’s policies are cementing America’s economic might.”
The yen
On Monday, speculation began to mount that given weakness in the Japanese yen, there might be some sort of intervention.
The Federal Reserve Bank of New York has reportedly checked dollar and yen rates with dealers, which is seen as a precursor to a possible intervention. The yen strengthened on the news, while the dollar dipped in response.
“[The Bank of Japan] would sell dollars and buy yen to strengthen the yen currency — that would strengthen the yen, you would offer more dollars to …
Dollar falls to multi-month lows on uncertainty over tariffs, the Fed, and shutdown threat
Who benefits from this decision?
The value of the dollar continued to drop on Monday, falling to a four-month low as uncertainty surrounding tariffs, the Federal Reserve, and a potential government shutdown put downward pressure on the greenback.
The dollar index dropped as low as 96.85 on Monday, down from recent highs of over 99 just last week. The Bloomberg Dollar Spot Index reached nearly 110 in January 2025. The relative value of the greenback has fallen 11.7% since that time in January of last year.
ACCUSATIONS OF INSIDER TRADING ON MADURO OPERATION BRING PREDICTION MARKETS INTO FOCUS
The most recent dip is attributable to quickly evolving factors, such as a possible intervention to help the struggling Japanese yen and the growing potential for yet another government shutdown in the coming days.
But in the longer term, experts contend the dollar’s slide is being fueled by uncertainty in the U.S. economy, mounting concerns about the independence of the Fed and questions about what might come next for federal tariff policy.
“If I had to summarize the dollar, defining in one word, it would be uncertainty,” Steve Swedberg, finance and monetary policy analyst at the Competitive Enterprise Institute, told the Washington Examiner.
Still, while the dollar has fallen directionally in recent days, and more broadly over the past year or so, it is still at levels that historically haven’t set off alarm bells. For instance, it was in the 70s and 80s for years following the 2008 financial crisis.
The White House told the Washington Examiner on Monday that President Donald Trump remains committed to a strong dollar.
“President Trump remains committed to the strength and power of the U.S. Dollar as the world’s reserve currency,” spokesman Kush Desai said in a statement. “Foreign holdings of U.S. Treasuries reaching an all-time high and trillions in investment commitments to make and hire in America are all proof that the Trump administration’s policies are cementing America’s economic might.”
The yen
On Monday, speculation began to mount that given weakness in the Japanese yen, there might be some sort of intervention.
The Federal Reserve Bank of New York has reportedly checked dollar and yen rates with dealers, which is seen as a precursor to a possible intervention. The yen strengthened on the news, while the dollar dipped in response.
“[The Bank of Japan] would sell dollars and buy yen to strengthen the yen currency — that would strengthen the yen, you would offer more dollars to …
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