In the first six months of this year, the US dollar has fallen by more than 10 percent in global markets, which is considered the biggest fall since 1973. At that time, the United States withdrew from the gold standard, and this time the reason for the fall is different—the aggressive economic and diplomatic policies of the administration led by President Donald Trump are the main reason for this crisis.
Analysts say that the imposition of tariffs, a one-sided foreign policy, rising government debt and fears of inflation have all combined to create a lack of confidence in the United States among investors. Although the stock market and bond market responded positively for a while, the value of the dollar has fallen steadily.
The fall in the dollar has increased the cost of traveling abroad for US citizens and increased the cost of imports has put pressure on the overall economy. Although the weak dollar has given some advantage to US exporters, because it increases the competitiveness of US products in the international market.
“Whether the dollar is strong or not is not the point,” said analyst Steve Englander. “The real question is how the world views the dollar’s role now.”
The dollar index was at its highest point when President Trump was sworn in in January 2025. But since then, the dollar has been steadily falling amid multiple tariff announcements, foreign policy uncertainty, and a debt-ridden economy.
Trump’s announcement on April 2 of tariffs on multiple countries has created renewed volatility in US markets. This situation has not only led to the dollar’s decline, but also raised deep questions about the US’s economic stability and global leadership.
According to analysts, this weakness may not be temporary—rather, it may be the beginning of a long-term structural change.
Source: New York Times.