By The US dollar has surged in response to former President Donald Trump’s renewed tariff threats, with the euro falling to near a two-year low. The dollar index, which measures the greenback against a basket of currencies, climbed to its highest level in months as investors sought safety amid growing trade tensions.
Trump’s proposed tariffs on European goods have raised fears of a trade war, prompting a sell-off in riskier assets and a flight to the dollar. “The market is pricing in the potential for significant disruptions to global trade,” said a financial analyst. “This has created a risk-off sentiment, benefiting the dollar.”
The euro’s decline to $1.05 reflects broader concerns about the economic impact of tariffs on the European Union. Analysts warn that prolonged trade tensions could weaken the eurozone’s recovery and weigh on global economic growth.