The U.S. dollar experienced a sharp decline after breaking through the key support level of 96.00 during the final hour of trading, falling to 95.38. This move was widely described as historic. Traditionally, periods of geopolitical tension or the threat of conflict lead investors to seek safety in the dollar. Despite ongoing international unrest and rising tensions surrounding Iran, the opposite occurred in this case, with global markets moving away from the U.S. currency.
© New Green B.V.
Leon Bol with his partner Martin van der Sande
According to Dutch fresh produce exporter Leon Bol of New Green in Poeldijk, the impact on the fruit and vegetable (AGF) export sector remains limited. "The biggest impact was already felt last year, when the dollar rose by 15%, and import tariffs of 15% were introduced. The increase of around 2 to 3% seen more recently is more in line with a United States that is increasingly focusing inward. In my view, this has relatively little effect," Bol said.
He noted, however, that an important uncertainty remains. "There is still a major X-factor that could cause market disruption. The U.S. Supreme Court is expected to rule on whether the tariffs imposed by Trump on global trade are legally valid. If the Court were to decide that they are unlawful, the dollar could potentially fall to 1.25 or even 1.30," Bol explained.
At present, demand from North America is largely limited to specialty products such as witlof, red chicory, and rhubarb. "In addition, exports of Dutch aubergines have resumed," he added.
© New Green B.V.For more information:
New Green B.V.
Tel.: +31 174 522555
[email protected]
www.new-green.nl
