The dollar has sunk to its lowest in three years as rapidly changing U.S. trade policy unsettles markets and expectations build for Federal Reserve rate cuts, fuelling outflows from the world's biggest economy.

Deutsche Bank's George Saravelos has been banging the drum about how the geopolitical realignment being pushed by the Trump administration could help to undermine the value of the U.S. dollar. In other words,

The Trump administration and Wall Street are starting to agree on one thing: America’s trade deficits are a problem and the dollar might not stabilize until imports and exports realign. But in reality,

Global stocks and the dollar slipped on Thursday as investors sized up a benign U.S. inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dented risk sentiment.

By all appearances, a ghost from the 1980s is pacing the corridors of the White House once more. The phrase “Plaza Accord 2.0” is being quietly whispered,

Trump’s fiscal policies may boost the US Dollar Index (DXY) but could face long-term pressure from rising deficits. USD/JPY volatility looms, with the yen reacting to Trump’s trade policies ...

The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.

It’s not just lower-income consumers who are penny pinching to navigate President Donald Trump’s trade war and an inflationary period. Higher-income consumers are turning to dollar stores to stretch their dollar further, according to earnings calls this week from Dollar General and Dollar Tree.