Despite a recent surge in value, the U.S. dollar has taken a major step back in recent months. The dollar is officially down 11% since the first trading day of the 2017 calendar. The plummet marks the lowest level the dollar has reached in nearly three years.
Cause Of The Decline
The economy did not thrive under President Barack Obama, but it did improve during his eight-year tenure. With Donald Trump winning the election back in November, U.S. investors were optimistic for their financial futures. Trump’s campaign promises of cutting taxes and eliminating many financial regulations seem to be nothing but conjecture at this point. Investors are losing more and more confidence in the current administration each day.
With Trump’s disappointing performance in his first year in office, Wall Street has mimicked his progress, or lack thereof. Other factors like a non-existent rate hike at the Federal Reserve have hurt the dollar’s value as well. America’s economy is quickly falling behind Europe’s economy as the country appears to be recovering from turmoil caused by Britain’s exit of the European Union. The U.S. Dollar is now down 12% against the Euro.
The U.S. Dollar is officially having its worst year since 1986. And while many variables have caused this plummet, Trump remains the key figure in the dollar’s alarming descent. The dollar was rising at a record pace when Trump took office – largely due to expectations of his performance in office. His background as a businessman was a welcomed change from Obama’s political experience, but so far, the 71-year-old has failed to strengthen the economy.
Peso Trends Contradict Dollar
As the U.S. dollar rose during Trump’s campaign, the Peso fell rapidly. The currency dropped 11% in value while votes were being tallied in America. Today, it’s the U.S. that is struggling to compete with the Peso – down more than 16% against it currently. The President’s anti-trade talk hurt the Peso significantly months ago, but the currency is recovering merely because the talk seems to be….well, all talk.