Value of US dollar drops to its lowest

The value of the US dollar has dropped to its lowest point. It has seen a record decline in the last three years, making it the weakest it's been in recent times.

The US dollar is the most widely used currency in global transactions, and the value of many other currencies is typically dependent on it.

According to the US Dollar Index (DXY) and information from Forbes, at 5am local time on Friday (April 11), the value of the dollar fell to 99.01, marking a nearly 8% drop in its value over the past year. This is the lowest the US dollar has been in three years.

Forbes reports that this record fall in the dollar’s value is due to US President Donald Trump's tariffs on several countries. On Wednesday (April 9), Trump imposed exceptionally high import tariffs on dozens of countries, which led to the significant drop in the dollar’s value that day.

Trump's actions have caused significant turmoil in global markets. Stock markets in the US, Europe, and Asia have experienced sharp declines. However, Trump later announced that the tariffs imposed on all countries, except China, would be suspended for the next three months.

Foreign currency transactions are made between the currencies of two different countries. For example, buying US dollars with Australian dollars. This means the value of one country's currency is determined by the value of another country's currency, known as the "exchange rate." A currency becomes stronger due to political stability, demand for goods, and other factors.

The value of most currencies fluctuates. This means the price changes based on supply and demand. Some currencies, however, have fixed values. For example, the value of the US dollar was fixed against the Australian dollar until 1998. However, that system was abolished, and now the value of the Australian dollar also fluctuates based on demand and supply.