Trump's Unpredictable Policies: A Blow to Dollar Confidence

Recent policies under US President Donald Trump have led to declining confidence in the US dollar, according to ECB policymaker Francois Villeroy de Galhau. His unpredictability and protectionist measures are cited as detrimental to the US economy, impacting global markets and trade relations.

In recent weeks, US President Donald Trump's policies have led to a waning confidence in the US dollar, a key figure in European financial policy indicated. Francois Villeroy de Galhau, a member of the European Central Bank's governing council, expressed concerns during an interview with France Inter radio on Thursday.

Villeroy, who also serves as the head of the Bank of France, critiqued the Trump administration's protectionist stance and its unpredictability, labeling them as negative influences on the US economy. His comments reflect wider apprehension among international policymakers about the US's current economic direction.

Adding to the economic tension, Trump announced on Wednesday a temporary reduction in the heavy tariffs he had recently levied on a number of countries. Simultaneously, he amplified pressure on China, leading to a surge in global stock markets as investors reacted to the evolving trade landscape.

(With inputs from agencies.)