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Next up for markets: A crisis of confidence in the dollar
Reuters ^ | Dharma Ranasinghe

Posted on 04/09/2025 2:34:51 PM PDT by delta7

LONDON, April 4 (Reuters) - In times of market panic investors tend to rush to the safety of the dollar, but when stocks swooned in response to U.S. tariffs this week, they ran away from it. Investors say it's a sign that the greenback’s global standing may be eroding. The dollar, for decades a safe haven, on Thursday fell about 1.7% in its biggest daily drop since November 2022 (.DXY), opens new tab, after President Donald Trump imposed tariffs on imports at levels not seen since the early 1900s. Stock markets also tanked, as tariffs ignited recession worries….

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: dollar; stockmarket; usd
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Many thoughts on the declining dollar, it makes US goods cheaper to purchase, throw in Trumps 10 percent Tariff increases on imported goods increases US Treasury holdings, best to wait and see how it pans out.
1 posted on 04/09/2025 2:34:51 PM PDT by delta7
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To: delta7

The dollar’s still the safest currency.


2 posted on 04/09/2025 2:38:38 PM PDT by GOPJ (Elites want the gravy train running ripping us off for NATO, Tariffs and bad trade deals. NO MORE.)
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To: GOPJ

Don’t forget that George Soros made a fortune when he shorted the British pound!


3 posted on 04/09/2025 2:40:50 PM PDT by Brandonmark (November 5, 2024 - A New Day in America!Adam Schiff PARDONED criminal!)
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To: delta7
Funny, not seeing anything in the forex market indicating a weakness in the dollar.

(e.g. this story is fake news)

4 posted on 04/09/2025 2:44:05 PM PDT by AndyTheBear (Certified smarter than average for my species)
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To: delta7

Notice how quick the media shifts from the stock market (now going up) to the dollar just to keep everyone thinking the economy is crap under President Trump...


5 posted on 04/09/2025 2:44:35 PM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: packrat35

Fear porn sells really well in the springtime.


6 posted on 04/09/2025 2:45:15 PM PDT by protoconservative (Been Conservative Before You Were Born )
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To: AndyTheBear

It’s just the next “panic/scare” story du jure.


7 posted on 04/09/2025 2:45:30 PM PDT by cuban leaf (2024 is going to be one for the history books, like 1939. And 2025 will be more so, like 1940-1945.)
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To: packrat35

That was my immediate thought when I saw this headline.


8 posted on 04/09/2025 2:54:27 PM PDT by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to says it.)
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To: GOPJ

There is no alternative. This is more nonsense.


9 posted on 04/09/2025 3:20:05 PM PDT by HYPOCRACY (Long live The Great MAGA Kangz!)
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To: delta7

Trump WANTS a slightly weaker dollar, at least for a little while...it does make our goods cheaper nd will increase exports and purchasing of american goods.


10 posted on 04/09/2025 3:34:58 PM PDT by dp0622 (Tried a coup, a fake tax story, tramp slander, Russia nonsense, impeachment and a virus. They lost.)
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To: AndyTheBear

Considering the USD was about 120 in 2000, now hovering at around 100, clearly shows a long term downward trend. The last three months show a 5.7 percent decline….not a big deal to some as all paper currencies are declining rapidly in purchasing power.

Granted, the USD is still the prettiest pig ( besides the Swiss Franc) in the mud pit.

https://www.marketwatch.com/investing/index/dxy


11 posted on 04/09/2025 3:36:40 PM PDT by delta7
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To: AndyTheBear

The yen, the pound and the euro are up a little. That’s all so far. I don’t see huge moves into any currency.


12 posted on 04/09/2025 3:42:17 PM PDT by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable anima)
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To: delta7

At today’s Treasury auction, buyers showed up in force. Apparently, there is solid demand for the 10-year.


13 posted on 04/09/2025 3:43:30 PM PDT by proxy_user
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To: proxy_user

Let’s see if that holds…it has not been the case recently ( Senile Joe’s reign). It is no wonder Money is moving to perceived safety after the Dows minor correction ( volatility) the past week.

Increasing US debt is not going unnoticed. Only time will tell if/ when the big money moves from government debt holdings to private holdings. An increase of US debt will squash the buying of government debt and move back into private sectors.

Confidence ( or loss of) is everything.


14 posted on 04/09/2025 3:57:52 PM PDT by delta7
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To: AndyTheBear

?? Gold was up $99 today….


15 posted on 04/09/2025 4:06:00 PM PDT by wny (s)
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To: delta7

How come nobody suggests an alternative to the dollar?
Fiat money is all about “stability”.
name a fiat money with the strength of a weak USD?


16 posted on 04/09/2025 4:22:37 PM PDT by rellic (No such thing as a moderate Moslem or Democrat )
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To: rellic

How come nobody suggests an alternative to the dollar?
—————
They are, ALL the world’s Central Banks, the big money, are buying Gold in record amounts ( tonnage) instead of US Treasuries.

The US Comex and LBMA are being drained of physical Gold and Silver. The amount of those taking delivery is off the charts.


17 posted on 04/09/2025 4:37:52 PM PDT by delta7
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To: proxy_user

At today’s Treasury auction, buyers showed up in force. Apparently, there is solid demand for the 10-year.
———
They don’t publish who is buying, some think the Fed is stepping in and buying. A very, very, not good scenario.

https://www.zerohedge.com/news/2025-04-09/stop-what-youre-doing-and-watch-bonds-now

“ Hedge funds are way overleveraged and exposed to moves in the Treasury market via this complex trade, foreign Treasury bond holders are selling, or both. As one of the sharpest friends I have said to me at about 5PM today: “something HUGE is breaking below the surface”.

The Fed will protect the bond market at all costs, which likely means we could see significantly more shock and downside to markets and the system before “the bailout of all bailouts” — if my friend is, in fact correct.…”


18 posted on 04/09/2025 4:41:56 PM PDT by delta7
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To: delta7

If we keep printing dollars at the pace of the last five years, the dollar will keep shrinking.

We have to cut spending and printing.


19 posted on 04/09/2025 4:44:54 PM PDT by lurk (u)
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To: delta7

OK, you live in bung fu$ked Egypt and you have a maple leaf coin and need a dinner for your family.
what kind of change will you get?
Y’all get the idea?
That will be an expensive dinner!
Until we go back to pouring gold dust on a scale,
(is that all real gold?).
Fiat money works best, if you have an economy
that can back it. The US does have such an economy.


20 posted on 04/09/2025 4:50:49 PM PDT by rellic (No such thing as a moderate Moslem or Democrat )
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