The value of the US dollar has fallen to its lowest level in three years. This is mainly because President Donald Trump announced new import duties on Thursday.
At the end of last week, investors still had to pay 1.141 dollars for a euro. Now that is slightly more than 1.159 dollars. The American currency has thus fallen to its lowest level in three years, writes Financial Times.
Trump said on Thursday he would send letters to trading partners of the United States within one to two weeks, containing the amount of the new tariffs. He wants to increase the pressure in the trade war. Countries have until July 9 to reach a deal with the US.
On May 16, the American president also said that he would determine the tariffs for trading partners “in the next two to three weeks.”
Trump’s announcement “points to new escalation of trade tensions in the run-up to the deadline,” said Derek Halpenny, analyst at the major Japanese bank MUFG.
Furthermore, the dollar value is influenced by tensions in the negotiations between Iran, the US and Israel over the Iranian nuclear program. Iran and the US are trying to revive the 2015 nuclear deal. At that time, Iran stopped a large part of the nuclear program in exchange for American sanctions relief. Trump has increasingly less confidence that the deal will yield anything, he said on Wednesday.