From Yahoo Finance: 2025-04-11 18:00:00

The U.S. dollar hits a three-year low, impacting gold and currency ETFs as trade war tensions rise and foreign investors pull back from American assets, despite a surge in U.S. bond yields, signaling a highly abnormal market environment.

As of midday Friday, the U.S. Dollar Index hovers around 100, the bottom of a trading range since 2022, with big implications across the ETF landscape, benefiting gold ETFs like SPDR Gold Trust and iShares Gold Trust as gold prices surge to an all-time high above $3,200 per ounce.

Currency-tracking ETFs like Invesco CurrencyShares Japanese Yen Trust and Invesco CurrencyShares Euro Trust have jumped as their respective currencies rally against the dollar, while the Invesco DB US Dollar Index Bullish Fund slumps more than 6% this year as the greenback loses ground.

Currency-hedged ETFs, like WisdomTree Europe Hedged Equity Fund and WisdomTree Japan Hedged Equity Fund, are starting to lose their edge as plain-vanilla international ETFs outperform their hedged counterparts due to the weakening dollar, with investors increasingly favoring unhedged international ETFs for potential currency tailwinds.

Read more: Which ETFs Stand to Gain or Lose?