US Dollar Records 3-Year Low

(MENAFN- Jordan Times) AMMAN -The US dollar fell to a three-year low, weighed down by "sharp" turmoil in US trade policy and growing expectations of interest rate cuts by the Federal Reserve.

The decline prompted investors to withdraw their capital from the United States, adding to the pressure on the US currency, according to the Jordan News Agency, Petra.

Although the dollar recorded a "temporary" rise in the appetite for "safe havens" after the Israeli strike on Iran, it is still heading for its "biggest" weekly loss in a month, according to the Cable News Network (CNN) on Friday.

Analysts in global markets confirmed that the dollar is witnessing a "wide" sell-off, as a result of the loss of confidence in the US economic policies, especially in light of the sudden shifts in the US administration's attitudes towards trade and interest rates.

Scandinavian currencies have made "big" gains against the dollar this year: the Swedish krone rose by 15 per cent, its best performance in half a century, while the Norwegian krone rose by13 per cent, although the two countries' economies face challenges such as slowing growth and low interest rates.

The "Safe-haven" currencies, with currencies such as the euro, Swiss franc and Japanese yen are rising about 10 per cent since the start of the year, benefiting from a weaker dollar, but the gains are increasing pressure on their economies.

A stronger currency is decreasing import prices and increasing the risk of deflation.

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