US Dollar Falls to 3-Year Low: Experts Name the Reason.

The American dollar has experienced a significant decline compared to major global currencies, reaching its lowest level in three years. The reason for this is the unpredictable policies of the Trump administration and its pressure on the Federal Reserve System of the United States.

US President Donald Trump has severely criticized Federal Reserve Chairman Jerome Powell for refusing to lower the interest rate in accordance with the White House's demands. This led to further declines in the value of the dollar. There is a possibility that Trump may attempt to dismiss Powell before the end of his term in 2026.

In this context, the euro has strengthened by 1.5%, reaching its highest level since November 2021. Since the beginning of April, this European currency has appreciated by over 5%. Investors are increasingly viewing the euro as an alternative to the dollar amid rising global uncertainty.

The Executive Director of the Economic Strategy Center, Hlib Vishlinsky, explains that this reaction is connected to the unpredictability of US trade policy and pressure on the Federal Reserve to lower rates. The actions of the new US administration undermine the traditional model where the dollar was a safe 'haven' for global investors.

The decline in trust in fiat currencies has also led to a rise in the value of gold, which has surpassed $3500 per troy ounce for the first Time in history. The overall increase in the value of gold this year amounts to 30%.

Problems for the dollar began even before Trump's second term. Rating agencies no longer provide the highest level of reliability to American bonds. Therefore, it cannot be guaranteed that, in times of crisis, investors will continue to invest in American securities, notes Taras Kozak, president of the investment group 'Universal'.

Despite the current issues, experts do not foresee a complete collapse of the American currency. The American economy is immense, American consumers are interesting to everyone, and everyone wants to sell their goods in America, emphasizes Kozak.

Analysts recommend that Ukrainians distribute their currency savings among different currencies to minimize risks from exchange rate fluctuations.