Donald Trump’s latest trade threats pushed the dollar to its lowest level in three years on Thursday as rising worries over trade and geopolitics piled greater pressure on the currency.
The dollar was dragged lower after the US president told reporters he would send letters to trading partners outlining new tariff rates in the next couple of weeks, as the end of the 90-day pause on so-called “reciprocal” levies approaches next month.
The greenback fell as much as 1 per cent against a basket of its trading partners, including the pound and the euro. The move took the currency past the low it hit in the wake of Trump’s “liberation day” tariff blitz in early April and to its weakest level since March 2022. By late afternoon trading in London it was 0.7 per cent lower on the day.