The value of the US dollar has dropped to its lowest level in three years, mainly due to market uncertainty caused by the conflict between Israel and Iran, as well as uncertainty surrounding US-China trade relations. The dollar index, which measures the value of the dollar against a basket of six major world currencies, fell by 1.1% last week. The Israel-Iran conflict has further unsettled investors, but the dollar and gold remain safe havens for capital in uncertain times. Trade negotiations between the US and China are ongoing, but details of the agreement remain unclear, adding to dollar volatility. Israeli strikes on Iranian targets and Iranian missile responses have increased geopolitical tensions, while the international community calls for restraint. US President Donald Trump has announced the possibility of a soon peace agreement between Israel and Iran, but the situation remains uncertain. These events highlight the complex interplay between geopolitical conflicts and economic markets, especially currency markets.
Political Perspectives:
Left: Left-leaning sources emphasize the economic instability caused by geopolitical conflicts and criticize aggressive military actions, highlighting the human cost and the need for diplomatic solutions. They focus on the negative impact of trade wars and the unpredictability of US policies under President Trump, stressing the importance of international cooperation and peace.
Center: Center-leaning sources provide balanced coverage, reporting on the dollar’s decline due to both geopolitical tensions and trade uncertainties. They highlight statements from political leaders and analysts, presenting facts about the Israel-Iran conflict, US-China trade talks, and market reactions without strong bias. They emphasize the complexity of the situation and the cautious optimism for peace talks.
Right: Right-leaning sources tend to emphasize the security threats posed by Iran, supporting Israel’s military actions as necessary to prevent nuclear proliferation. They highlight President Trump’s efforts to negotiate peace and maintain US strength, portraying the dollar’s volatility as a temporary effect amid broader strategic moves. They often frame the conflict in terms of defending Western interests and combating authoritarian regimes.