April 11, 2025 | By Hours of News Desk
The US Dollar crash 2025 has become a focal point of global financial headlines, as the currency came under intense selling pressure this week. The US Dollar crash 2025 scenario unfolded rapidly, plunging to multi-year lows against major currencies amid renewed uncertainty over US trade policy and economic indicators. The USD Index fell below the 100.00 mark for the first time since July 2023, touching 99.70 in early trading on Friday before rebounding slightly to 99.80.
Dollar Dips as Trade Policy Reversals Spark Risk Aversion
The US Dollar crash 2025 deepened when President Donald Trump unexpectedly paused high tariff rates on most countries for 90 days, just hours after they had gone into effect. China, however, was not included in this reprieve, as duties on its exports surged to a stunning 145%, worsening the already tense trade conflict.
Analysts say this erratic policy shift has further contributed to the US Dollar crash 2025, shaking global confidence in American economic leadership. The result was a broad sell-off in US assets. The Swiss Franc strengthened sharply, with the USD/CHF pair plunging to levels not seen since 2011—a 4% drop in a single day. Similarly, safe-haven flows into the Yen and Euro surged.
Currency Heatmap: USD Weakens Across the Board
Recent forex data underscores the scale of the US Dollar crash 2025, with the greenback losing ground against all major currencies:
- USD/CHF: -4.39%
- USD/EUR: -3.40%
- USD/NZD: -3.67%
- USD/AUD: -2.93%
- USD/CAD: -2.52%
- USD/JPY: -1.76%
- USD/GBP: -1.34%
The US Dollar crash 2025 trend is clear, as the Swiss Franc dominated forex markets thanks to its reputation as a safe-haven during times of global turmoil.
Gold Shines Bright Amid Market Volatility
One of the most notable consequences of the US Dollar crash 2025 is the surge in gold prices. The precious metal rallied over 3% on Thursday and broke past the $3,200 per ounce level Friday morning, reaching an all-time high. Investors seeking refuge from the US Dollar crash 2025 and overall market instability are fueling this upward trend in commodities.
Market Reactions: Equities Drop, Treasury Yields Surge
US stock indices declined sharply on Thursday, wiping out recent gains. While Friday futures showed some recovery, volatility remains extremely elevated. The 10-year Treasury yield surged—on track for its biggest weekly increase since 2001—highlighting inflation fears and concerns related to the US Dollar crash 2025.
USD/JPY and EUR/USD Movements
The US Dollar crash 2025 hit currency pairs like USD/JPY, which dropped over 2% on Thursday and continued downward on Friday, nearing 143.00. Japan’s Finance Minister warned of the risks posed by rapid FX fluctuations to the domestic economy. Meanwhile, EUR/USD stayed strong, breaching 1.1300, its highest level in over two years.
Inflation Data Ahead
Markets are eyeing the March Producer Price Index (PPI) and Consumer Price Index (CPI), along with sentiment data from the University of Michigan. While a core CPI reading of 0.3% would typically strengthen the dollar, the ongoing US Dollar crash 2025 may override such fundamentals as inflation is now seen as more damaging than supportive.
Trump’s Trade Strategy Under Scrutiny
The US Dollar crash 2025 reflects broader doubts about current US economic strategy. ING’s Chris Turner commented that “tariffs now seem more transactional than strategic,” emphasizing the policy inconsistency that has rattled investors and fueled the US Dollar crash 2025.
Although temporary tariff suspensions have calmed markets slightly, escalating tensions with China suggest the US Dollar crash is far from over. Even the offshore yuan, which initially strengthened, has begun to weaken again due to the fragile trade environment.
Final Word
From collapsing Treasury yields to soaring gold and jittery equity markets, nearly every signal is flashing red amid the US Dollar crash. The DXY Index is down over 1% for the week and remains volatile in the 102.00–103.50 range. Until trade policy stabilizes and inflation is brought under control, the US Dollar crash is likely to dominate headlines and influence global capital flows.
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