FX.co ★ Dollar Languishes at 3-Year Lows

The dollar index decreased to approximately 99.5 on Monday, reaching its lowest point in three years as ongoing uncertainties about the US economic future and policy trajectory continued to affect market sentiment. This downturn occurred after the Trump administration revealed tariff exemptions for items such as smartphones, computers, and other technology products under a new "reciprocal" tariff scheme. Nevertheless, Commerce Secretary Howard Lutnick mentioned that these imports might still encounter additional levies within the upcoming two months. Furthermore, President Trump clarified that these products are still subject to the existing 20% tariffs on Fentanyl. In spite of the dollar's significant drop, Lutnick expressed he is "not concerned about the US Dollar." Last week, the dollar index fell by 3% as rising trade tensions and concerns about economic growth encouraged investors to divest from US assets. Data released on Friday indicated that US consumer sentiment fell to its lowest level in over three years in April. The dollar weakened broadly, especially against the euro and yen.