Summary
The US dollar has experienced a significant drop in the first half of 2025, marking its worst performance since 1973. The decline is linked to President Trump's economic policies, which have affected investor confidence and led to a decrease in the dollar's strength compared to other major currencies.
Key Facts
- The US dollar index dropped 10.8% in the first six months of 2025.
- President Trump's trade policies and Federal Reserve criticisms have reduced the dollar's attractiveness as a safe investment.
- Trump's tax bill, under debate, could add trillions to US debt, worrying investors.
- Gold prices have reached record highs as central banks buy gold due to fears of dollar devaluation.
- Tariffs announced by Trump led to major selloffs in US financial markets, decreasing the value of stocks and government bonds.
- The OECD reduced its US growth expectation for 2025 from 2.2% to 1.6%.
- The proposed tax bill could increase US Federal debt by $3.3 trillion by 2034.
- Moody's lowered the US credit rating, reflecting concerns about the country's economic growth and currency demand.
