On Wednesday, October 2, 2019, US dollar reportedly is in confusion and, subsequently, tumbles. The fear of recession, that has been jeopardizing the country, has harmed its currency.
As of 09:16 AM ET this day, the US dollar index was at 98.797. This does not indicate a good appreciation of US dollars against other six major currencies.
Actually, today is not the first day the currency suffers. Since the emergence of warning of global recession, US dollars has been gradually decreasing, or at the very least stable, in terms of value.
The information pertaining to the jeopardy in the currency follows right after ISM report. Accordingly, ISM manufacturing data disclosed that the economy and business, including manufacture, activities are not doing well.
According to the report, ISM wrote that the score was 47.8. What is even worse is that this score is the lowest in the decade.
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Jeopardy in Economy
The continuously weakening US dollar is heavily influenced by the stress in economy. Speaking of US economy, the country is, arguably, not performing that well.
The ISM-issued report has, at some point, resulted in debates and controversies throughout the country, specifically in terms of its economic performance. The report has signaled the negative impacts of US-China trade war to the domestic economy.
Moreover, Federal Reserve’s latest policies also contributed to the current condition. Also, US President Donald Trump, on his Twitter account, blamed the institution for the strong dollar.
“As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!” he tweeted.
Another indication that the business and economic sector is currently suffering is that the recent decline of auto sales. Several auto manufacturers have reported that they have lost two digits. Consequentially, the sales might decrease by approximately 12%.
Also Read: Can President Trump Pull US Companies Out of China?
