Dollar, stocks fall
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The U.S. dollar has struggled to rebound since President Donald Trump announced his “liberation day” tariffs in early April, with some analysts expecting that the greenback’s decline isn’t over even if its status as the world’s reserve currency appears safe for now.
The Canadian dollar strengthened to a seven-month high against its U.S. counterpart on Friday as the greenback posted broad-based declines and domestic retail sales data supported bets that the Bank of Canada would remain on the sidelines.
ESWAR PRASAD is Senior Professor of Trade Policy in the Dyson School of Applied Economics and Management at Cornell University, a Senior Fellow at the Brookings Institution, and the author of The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance.
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The US dollar slumped to its lowest level since 2023 as new tariff threats from President Donald Trump and the risk of a widening fiscal deficit drag on the currency’s appeal.