The dollar is rapidly rising due to Trump's new tariffs: how this will affect global currencies.

The aggressive foreign policy of US President Donald Trump, who imposed new tariffs on the import of goods and products from other countries, has unexpectedly positively influenced the dollar's exchange rate in the world. The American currency strengthened last week compared to other foreign currencies.

According to Reuters, the dollar's exchange rate increased due to other currencies starting to lose value because of the new US tariffs on trade. It is forecasted that the dollar may rise by 2.5% compared to the euro, yen, franc, and Canadian dollar. This is the best performance for the dollar since September 2022, when it rose by 3.1%.

What is happening with the dollar

On Friday, August 1, the dollar index increased by 0.1% to 100.14 points, which is the highest level since May 29 this year.

Currently, the White House has imposed new tariffs on imports from dozens of countries. According to information from the head of the Parliamentary Committee on Finance, Tax, and Customs Policy, Danilo Getmantsev, the highest rates have been established for some countries, such as Syria - 41%, Laos and Myanmar - 40%, Switzerland - 39%, Iraq and Serbia - 35%, Algeria, Bosnia and Herzegovina, Libya, South Africa - 30%. There is also a 25% tariff for Brunei, India, Kazakhstan, Moldova, and Tunisia.

What else is worth knowing

Currently, the dollar is the primary currency for the hryvnia's exchange rate peg. However, when Ukraine joins the European Union, the leadership may consider the possibility of pegging the hryvnia to the euro.

Earlier, the European Union decided to stop issuing banknotes in the denomination of 500 euros, but this money will remain in circulation. It is also interesting how Trump's new tariffs may affect Ukraine.

Under the influence of aggressive foreign policy and the introduction of Trump's new tariffs, the dollar began to strengthen globally, gaining compared to other currencies. This led to an increase in the dollar's exchange rate by 2.5% against the euro, yen, franc, and Canadian dollar. Currently, debates are ongoing about the possible pegging of the hryvnia to the euro after Ukraine's accession to the European Union.