Why did the U.S. dollar hit a four-year low?

The U.S. dollar reached new four-year lows due to investor unease stemming from geopolitical factors, uncertainty surrounding President Trump's policies, and potential market desires for a weaker exchange rate.

What assets benefited from the dollar's decline?

Safe-haven assets like gold saw their prices climb to fresh peaks, and the Swiss franc experienced significant gains, reaching an 11-year high against the dollar.

What drove U.S. stocks to record highs despite currency volatility?

U.S. stocks were propelled to new record highs by a flood of strong corporate earnings reports, indications of solid economic growth, and confidence in the AI boom.

Home / Business and Economy / Dollar Plummets, Stocks Soar Amidst Global Uncertainty

Dollar Plummets, Stocks Soar Amidst Global Uncertainty

28 Jan

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Summary

The U.S. dollar hit new four-year lows due to geopolitical and policy concerns.
Safe-haven assets like gold and the Swiss franc saw significant gains.
Despite currency volatility, U.S. stocks reached new record highs driven by earnings.

Dollar Plummets, Stocks Soar Amidst Global Uncertainty

World stock markets and the S&P 500 index reached unprecedented highs on Tuesday, propelled by a wave of strong U.S. corporate earnings reports. This surge in equities occurred despite significant turmoil in currency markets.

The U.S. dollar faced intense selling pressure, descending to new four-year lows against a broad range of currencies. Investors were unnerved by geopolitical developments, uncertainty surrounding President Trump's policy initiatives, and potential desires for a weaker exchange rate, leading to a divestment from the greenback. Short-term technical indicators and momentum suggested a challenging outlook for the dollar.

In contrast to the dollar's decline, safe-haven assets experienced a notable rally. Gold prices climbed to fresh peaks, reflecting its traditional role as a hedge against uncertainty. The Swiss franc also demonstrated strength, reaching an 11-year high against the dollar and hitting its lowest point against the euro since January 15, 2015, when the Swiss National Bank abandoned its currency cap.