Euro Hits Records: Analysts Explain What's Happening with the Dollar.

The euro exchange rate rose by 1.5% to $1.15, reaching its highest level since November 2021. Since the beginning of April, the euro has strengthened by more than 5%, and investors are increasingly viewing it as an alternative to the dollar amid rising global uncertainty. The American dollar started this week with a sharp decline against other stable currencies. On Monday, Wall Street's stock indices fell by 2.4%, and the dollar exchange rate dropped to its lowest level in three years against major trading currencies. Notably, the euro, yen, and Swiss franc strengthened, with the latter even reaching a ten-year high. Experts believe that the primary reason for the dollar's weakening was recent statements by the new U.S. president regarding the leadership of the Federal Reserve. Trump condemned Fed Chair Powell for refusing to lower interest rates according to the demands of the U.S. administration. 'This is a reaction to the unpredictability of U.S. trade policy and the pressure on the leadership of the Federal Reserve to lower rates in order to support economic growth. The policy of the new U.S. administration is effectively undermining the model that has worked for decades, where the dollar was a safe haven for all global investors,' explains Gleb Vishlinsky, Executive Director of the Center for Economic Strategy. Experts do not predict a total loss of the dollar as the primary reserve currency, but the structure of global currency reserves will undergo changes - the share of the dollar will decrease, while alternative currencies and gold will increase. Financial analysts recommend that Ukrainians diversify their currency savings, considering the instability in global financial markets and the growing role of the euro in Ukraine's foreign economic operations.