Fri, 30 Jan 2026

Fri, 30 Jan 2026 Why the US dollar hit a four-year low and could fall further

The falls have sparked questions about whether the world's go-to currency is losing its lustre.

* The US dollar has dropped to its lowest point in four years, hitting multi-year lows against the Euro and pound.
* Analysts expect the dollar to weaken further this year due to a combination of factors, including: + Market concerns about the Trump administration's policies + Escalating trade tensions with Europe over Greenland + Increased investment opportunities overseas + A sell-off in the Japanese bond market
* The decline in the dollar has raised questions about its status as the world's go-to currency and its impact on inflation inside the US.
* A weaker dollar reduces purchasing power for Americans, particularly for those traveling abroad, and may fuel inflation if it continues to fall.
* Analysts warn that a sustained drop in the dollar's value could lead to higher prices for imports and affect the US economy.
* The Trump administration has denied intervening in the foreign exchange market to help Japan, but analysts say there is still uncertainty about what they might do next.
* The decline in the dollar has led to a surge in gold prices, with its price doubling over the last year as investors seek a low-risk place to put their money.
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