The Australian dollar surged to its highest peak this year as US President Donald Trump’s persistent criticism of the Federal Reserve rattled Wall Street, driving the US currency to a three-year low and shaking investor faith in the world’s largest economy.
Trillions of dollars were erased from the US sharemarket overnight as the dollar index, traditionally seen as a haven for investors, plummeted to 97.92 against a basket of six major currencies to the lowest level since March 2022.
That pushed the Australian dollar above the US64¢ mark for the first time in 2025 to US64.38¢, having recovered nearly US5¢ in just two weeks which is the most since the chaos of the 2020 COVID-19 pandemic. It has gained 4 per cent this year.
Source: https://www.afr.com/markets/debt-markets/australian-dollar-soars-amid-trump-fed-tug-of-war-20250422-p5ltaj