The winners of the major currency do not include in 2025 until now in dollars

LONDON (Reuters) – Donald Trump’s second presidency has a major impact on currencies all over the world, but not in the way investors expect only a few months ago.

The dollar (DX = fThis year weakened against all other advanced market currencies, with the exception of Canada, to concern that the induction uncertainty is harmful to the American economy.

“The customs tariff, in general, tends to be good for the dollar,” said Liveris Pharmakis, a Barclays FX strategic expert. “But when they are applied against very close commercial partners, they can harm confidence in the United States.”

The recession risk in the United States is increasing and investors also see the reasons for the purchase of the likes of the euro, the Swedish crown and the Japanese yen in itself.

Here is a look at some prominent engines.

Germany has proposed to intensify spending on defense and infrastructure has led to the height of the euro. The largest weekly profit against the dollar was published since 2009 last week, and it has been appointed to the best quarter since 2022, with a rise of 5 %.

At about $ 1.09, the euro is at its highest level since the November 5 elections. Bofa sees other gains to $ 1.15 by the end of 2025.

The euro also rose against the pound sterling and the Swiss franc.

“The European Central Bank, which is close to the end of the mitigation cycle and increased defense spending in Europe, has changed the euro view in a basic way,” said Kenneth Brooks, head of corporate research and rates at Societe Genereale, noting that the US tariff was considered dangerous for the euro gains.

The other big winner was the yen, and it is 6 % stronger against the dollar so far this year thanks to the rise in Japanese prices and safe ride flows during troubled times.

“If you want to hedge the risk of slowing down in the United States, you go to Japan due to the risk of low US cabinet revenues,” said Farmakis in Barclay.

Elaine is particularly sensitive to changes in the gap between us and Japanese borrowing costs. Positive developments at home at home include union requirements to increase large wages.

This may lead the Bank of Japan to accelerate the high prices, and raise the appeal of the yen after four consecutive years of declines. The speculators have installed their biggest bet that the Japanese yen would continue to rise.

Pressing currencies in Canada and Mexico, the largest American commercial partner, may disappear, but is unlikely to disappear soon.

Ji says current trading levels indicate that the risk premium of 2 % is priced in the Canadian dollar, which is the half -risk peak premium seen in early February when it reached 22 years against Greenback.