The U.S. economy was growing at an annualized rate of 4.4% last year (the most recent period for which we have a GDP number), and inflation is in decline. The stock market is up nearly 12% over the last 12 months. On paper, that would suggest investors ought to have strong confidence in the U.S. dollar.
Yet the opposite is true.
The U.S. dollar remains in decline. It’s down 9.4% over the last 12 months and was down nearly 10% for 2025, as measured against a standard basket of foreign currencies. There are ups and downs, of course. But the greenback has been trending down since 2022.
The dollar has lost 8% of its value against the British pound over the last 12 months—which is shocking because U.K. annual economic growth (1.3%) is anemic compared to its American cousin.
