US dollar index collapses to its lowest in 2.5 years

On Thursday, April 3, the US dollar suffered its biggest decline in 2.5 years, according to the Bloomberg Dollar Spot Index (BBDXY), which dropped 1.77%. This decline comes in response to import tariffs that US President Donald Trump imposed the day before against various countries around the world. The BBDXY index includes the currencies of the 12 largest US trading partners, many of which were affected by the new tariffs.