Greenback’s Setback: Trump’s Tariffs Lead to Multi-Decade Low

The US dollar has suffered a significant setback, falling to a multi-decade low during the first half of 2025. Its 10.8% decline against a basket of currencies, the worst performance since 1973, is directly linked to Donald Trump’s aggressive tariffs and concerns that his economic policies are compromising the dollar’s global standing.
Unicredit analysts report a 10% loss for the dollar, while the euro has gained 5%. David Morrison of Trade Nation highlights the “chaotic” nature of the Trump administration and rising national debt as key contributors to the dollar’s woes. Despite the currency’s struggles, the S&P 500 of US stocks remarkably rebounded to a record high by the end of June, fueled by the “Taco” trade sentiment and the “fear of missing out” on market gains, showcasing the market’s capacity to adapt.