For over 12 months, the US dollar has experienced a significant decline, falling 10% in 2025 — its worst performance since 2017. A combination of factors has contributed to this downturn, including shifting geopolitics, Donald Trump's policies, Washington's pursuit of a lower exchange rate, and concerns over the US Federal Reserve's independence. Collectively, these elements have played a role in the dollar's sharp fall.
Yesterday, the Dollar Index — which measures the US currency against six major trading partners (excluding China) — dropped further by nearly 1.3%, marking its largest decline since April 2025. The index also reached its lowest level since February 2022, following Trump's remarks on the declining dollar.
