Dollar Hits Record Lows: How This Affects Russia and What Trump Has to Do With It

Financial markets are experiencing a massive shake-up, triggered by the rapid fall of the US dollar. The American currency hit lows not seen since spring 2022, which immediately led to the strengthening of the euro, pound, franc, and ruble, and also provoked a historic spike in gold and silver prices. The key intrigue was a statement by US President Donald Trump, who made it clear that he does not intend to stand in the way of the national currency«s weakening. We examine the causes of the crisis and its possible consequences for the global economy.

Collapse on All Fronts

The Bloomberg Dollar Index, which tracks its exchange rate against a basket of 12 currencies, fell by 3.15% in the last two weeks of January, with the annual drop approaching 10%. This triggered a chain reaction:

• The euro soared to $1.199, its highest since 2021;

• The British pound and Swiss franc hit multi-year records;

• Gold gained 3% in a single session, exceeding $5,300 per ounce, and since the beginning of the year its price has risen by more than 20%;

• Silver showed phenomenal growth of 60% since January, reaching a new all-time high.

Main Reasons for the Fall

Analysts highlight several key factors that triggered the crisis:

1. Political uncertainty. Investors are nervously reacting to geopolitical risks initiated by the Trump administration: escalation around Venezuela, Iran, trade wars, and even the discussion about buying Greenland. Domestic policy is also destabilizing the markets: pressure on the Federal Reserve (Fed) to lower rates and the risk of a government shutdown from February 1.

2. The ticking Japanese bomb. An unexpected rise in the yield of Japanese government bonds has shaken its deficit budget. To calm the market and avoid a sell-off of foreign assets by Japanese investors worth $5 trillion (which would be a blow to the US and EU economies), a strengthening of the yen is required. The weakening of the dollar is becoming a tool for this purpose, effectively coordinated with the Fed.

Consequences: A New World Order and a Threat to the Ruble

The weakening of the dollar, as noted by experts interviewed by Izvestia, could lead to fundamental changes:

1. Flight to safe-haven assets. Capital will rush into gold (forecast to rise above $6,000), as well as into the euro, franc, and yuan, reducing the dominance of the dollar in global settlements.

2. Paradoxical benefit for the USA. Despite rising inflation, a weak currency stimulates American exports and production, and devalues the national debt — which is exactly Trump«s goal.

3. Risks for Russia. The strengthening of the ruble against the backdrop of a weakening dollar hits the export-oriented economy, reducing ruble revenues and tax receipts. This may force the Central Bank of Russia (CBR) to raise the key rate at its meeting on February 13.

Thus, the current fall of the dollar is not a short-term correction, but a sign of a deep restructuring of the global financial system, the consequences of which will be felt by every country, including Russia.