What does the sudden diving of the dollar for the American economy mean

• The US dollar index fell to its lowest level for three years.

• It is a sign that Greenback loses its resumption in the backup.

• The bank said this would make us spend unnecessary.

The power of the dollar is diminished Customs tariff reaction Deutsche Bank wrote this week that the United States should be ready to face some difficult consequences as a result.

the US dollar indexWhich measures Greenback against a basket of other major currencies, has decreased to its lowest level for three years from Friday, when it was traded below 100 marks.

“The collapse of the unification of the dollar will not only be technical, but it can also be afraid of the health of the American economy,” said Adam Tereswest on Friday.

The sharp decline highlights that foreign investors abandon the American assets in dollars, as the American markets lose their attractiveness amid tense induction uncertainty and confidence mocking movements in stocks and bonds.

According to analyst George Saravilus, sudden diving in the dollar also indicates that countries reconsider their dependence on Greenback, which was the world’s leading backup currency for nearly a century.

This is bad news for us, economic sustainability, he said.

The superiority of the dollar is the reason that the United States is capable of sHigh debt levels Deutsche Bank Research Head of Deutsche Bandesh International said.

Basically, Greenback as the first Washington reserve currency provided safe financing that enabled the United States to spend its revenues. Last year, the United States deficit achieved the deficit 1.8 trillion dollars.

However, foreign demand for dollars has continued due to the historical stability of Greenback’s reputation and his reputation as a safe haven.

“As this now changes, the level of the stable state of a sustainable US financial deficit decreases,” Saravilus wrote. “This reduces the flexibility of the American administration in following up the expansion fiscal policy to support growth, in the same way that the United Kingdom and France faced similar restrictions.”

While analysts have He asked sustainability Among us are debt and spending habits, this was a problem that would appear in Contracts to come. However, if investors are quickly abandoning the dollar, this may become a more urgent concern.

Saravilus said good economic policies with other countries are necessary to ensure funding.

“We have argued more than a month ago that the reference to Greenland’s ownership, for example, contributing to undermining stability in US dollars,” Saravilus said. “We doubt that the American administration must adopt a more reconciliation position in international relations to maintain stability in the bond market to move forward.”