US dollar hits rock bottom, yuan soars after Trump takes office

The US dollar fell to a five-month low against major currencies, while the euro and the yuan both gained.

The USD fell in value after Mr. Trump took office - Photo: REUTERS

According to Reuters, the value of the USD on the morning of March 17 was near its lowest level since October 2024, while the euro was near its highest level in the same period.

Specifically, the euro/USD exchange rate on March 17 was 1 euro for 1.0879 USD. This figure decreased slightly compared to the peak of 1.0947 USD on March 11, the highest level since October 11, 2024.

Economists explain the decline in the value of the USD as a result of the unpredictable trade policies of new US President Donald Trump.

On the other hand, the euro's rise came from German political parties reaching an agreement on a new budget allocation on March 14.

The deal significantly increases the defense budget and is expected to restore growth momentum in the European Union's (EU) largest economy.

Two analysts from Goldman Sachs Bank, Mr. Dominic Wilson and Mr. Kamakshya Trivedi, commented that over the past month there have been "two opposing trends in the macro market".

The first trend is a “sharp downward adjustment” in US dollar assets “due to tariff policy volatility and, more broadly, the uncertain policy environment created by the new administration”. In contrast, the second trend is a “sharp upward adjustment due to Germany’s fiscal momentum”.

“These two changes pose a major challenge to the belief that the US economy has always been superior, a view that has dominated markets in recent times,” they said.

Meanwhile, the value of the Chinese yuan (CNY) in offshore transactions also nearly reached a four-month high on the morning of March 17, at 7.24 CNY to 1 USD. This figure is also only lower than the exchange rate of 7.2158 CNY to 1 USD on March 12, which was the highest level since November 13, 2024.

This adjustment trend is partly thanks to the Chinese State Council ( Government ) announcing a "special action plan" to stimulate domestic demand on March 16. Measures included in this plan include increasing people's income and establishing a childcare subsidy program.

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Source: https://tuoitre.vn/dong-usd-cham-day-nhan-dan-te-bay-cao-sau-khi-ong-trump-nam-quyen-20250317152401894.htm