The dollar fell on Tuesday and gold once again crossed a record, due to the American president’s increased tone against Europe, which he is threatening with customs duties to take over Greenland.
“The dollar no longer plays its role as a safe haven”, because “investors have reassessed their exposure to American assets” by reselling them, summarizes Neil Wilson of Saxo Markets.
Political and trade uncertainty could indeed affect the American economy.
Donald Trump, who wishes to seize the autonomous Danish territory, is threatening to impose additional customs duties of 10% on products coming from eight European countries which oppose his project, including Germany, France and the United Kingdom, from February 1. The European Union has promised a response.
The American president announced a meeting on the issue with the “different parties” on the sidelines of the Economic Forum in Davos, Switzerland.
Around 10:50 a.m. GMT (11:50 a.m. in Paris), the greenback fell 0.66% against the single European currency, to 1.1724 dollars per euro, and lost 0.93% compared to the Swiss currency, perceived as a safe haven, at 0.7900 Swiss francs per dollar.
However, the “risk of ‘instrumentalization of capital’ – the possibility that Europe will retaliate against the United States by withdrawing (voluntarily, editor’s note) part of its 8,000 to 12,000 billion dollars of American investments” appears “exaggerated”, estimate Rabobank analysts.
As long as the prospects for the valuation of American assets remain attractive, according to them, it is “unlikely to witness a significant exodus of European capital from the United States”.
Furthermore, according to MUFG, a number of countries which hold American Treasury bonds – the United Kingdom has 800 billion dollars, Belgium almost 400 billion, but also Luxembourg, Switzerland… – “serve as intermediaries, the real owner not being from this country”.
For example, US technology companies with subsidiaries in Ireland may own US government bonds.
Considered a safe haven, gold conversely continues to set records, reaching $4,737.54 per ounce on Tuesday, and continued around 10:50 GMT to climb 1.19% compared to its Monday close, at $4,726.70.
Silver also hit a new high on Tuesday, at $95.5107 an ounce.
Indonesia’s currency also hit a historic low on Tuesday against the greenback, at 16,997 Indonesian rupiahs per dollar.
She suffers from concerns over monetary independence, after Indonesian President Prabowo Subianto nominated his nephew for the post of deputy governor of the country’s central bank.
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10H50 GMT 22H00 GMT
© 2026 AFP
