The dollars crown is slipping, and fast

Scandinavian currencies are star performers

Safe-han currency strength a headache for central banks

(Updates Story First Published on Thursday, Adds Middle-East News, Updates Prices, Changes Dateline)

By Dhara Ranasinghe and Amanda Cooper

London, June 13 (Reuters) – The dollar has sunk to its lowest in three years as rapidly changing us trade policy unsettles markets and expectations build for federal reserve rate cats, fuelling outflows, fuelling outflows forms The world’s biggest economy.

While the dollar was higher on Friday, lifted by safe haven flows as israel launched a strike on Iran, it was still set for its biggest weekly drop in a month.

It is also down almost 10% against a basket of major currency this year, Leaving other Countries Grappling with Unanticipated FX moves that are having a Knock-or Impact on Economic Growth and Information.

“There’s clearly solid dollar seling,” said kit juckes, Chief FX Strategist at Socie General.

Here’s a look at some of the biggest movers:

Scandinavia’s currencies are the standout Performs Against the Dollar So far in 2025. The Swedish Crown is up 15%, its best performance at this point in the USATE in the US Current in the US. Norway’s Crown is up 13%, Its Best Run Since 2008.

Highlighting just how much how much of this strength stems from dollar weight, Sweden’s Crown is up only 4.5% against the Euro and Norway’s just 2%.

Sweden is expected to cut rates this month as inflation and its economy slow, yet its its currency shows no signs of weighting. In Norway, Lower Oil Pries often Temper The Crown, But that Dynamic has also been also been Upended by its relationship with the dollar.

The Euro, Swiss Franc and Japanese Yen Are Also Among the Biggest Beneficiaries of the Dollar’s Fall from Grace, Up Rough 10% Each So far this year.

But this come at a price.

Swiss inflation turned negative in May, Marking the first decline in consumer prisles for more than four years. The surge in the franc reduces the price of important goods, and piles pressure on the central bank to cut rates back below 0%.

European Central Bank Rate Setters will also have a wary eye on the single currency, which atha $ 1.1533 is Near Its Highest Since 2021.

“In my heart-of-bigs we are going to $ 1.20 but we should get there too fast trust if it’s deflationary,” said Socge’s Juckes.

Even after the recent surge, the yen remains down roughly 30% from end-2020 levels, leaving japan to try to balance the negatives of a strongeer currency with the need to deemonstrate Washington that it is not seeking an unfair advantage from its longer-term weakness.

For years, Asian Investors Parked Trillions of Dollars in Us Assets Such as Treasuries. Us President Donald Trump’s April 2 “Liberation Day” Fird the Starting Gun For that Capital to Start Flowing Back to the World’s Manufacturing Powerhouses, Boosting Their Currencies.

Taiwan’s dollar surgged 10% over two days in may and is up near 10% this year, while the korean won has gained Around 8%.

Singapore’s dollar, malaysia’s ringgit and thailand’s baht are all up 6% too, but china’s yuan – arguably the most exposed to tariffs – have appreciated by about 2% offshore, hemmed in bye Bank’s Guardrails Around Its Onshore Counterpart.

China wasn’t labelled a manipulator in the US treasury’s latest currency report, but the lag in the lag in the lag in the lag in the lag in the yuan will not have gone unnoticed in washington.

Argentina’s peso is an outlier, down Around 15% against the dollar and one of this year’s weakest performs.

The reasons are domestic with the introduction of a new exchange rate regime in april allowing the peso to float freely with a gradually expanding bands that started between 1,000-1,400 pesos per dollar.

Still, The Chaotic Crash Feared By Some has been avoided and a recent $ 20 billion loan agreement with the imf is positive.

Ingtrast, Mexico’s Peso, which was under particular pressure at the start of the year from us trade policy, have bounced back to Near its strongest levels space Since August. While it could gain further if tariff spats are resolved, it is also sensitive to the us economic outlook.

Softer data has raised the principal of Bank of England Rate Cuts and Capped sterling’s recent rally to more than three-yar highs against the dollar.

The pound is up almost 9% this year and analysts say Foreign Buyers May Be Rushing to Snap Up UK Plc Before Any Further Dollar Weakness Makes Future Transactions More Expected.

More than $ 10 billion in bids for British companies were announced on Monday, this year’s business day, according to dealogic data.

Analysts do, however, expect sterling to underperform other major currencies bar the dollar, Given fiscal worms and weightning growth.

“Sterling is Less appealing than others (currencies) and the macro risk are elevated,” said lloyds fx strategist nick kennedy.

(Reporting by Dhara Ranasinghe and Amanda Cooper, Additional Reporting by Karin Strohecker, Editing by Kirsten Donovan)